Sales have declined for 7 consecutive months! Tesla's downturn in Europe intensifies, with significant setbacks in the German and British markets

Despite the launch of the upgraded Model Y, Tesla's sales in major European markets continue to deteriorate rapidly.

According to data from the German Federal Motor Transport Authority (KBA), Tesla sold only 1,110 vehicles in Germany in July, a year-on-year decline of 55.1%. The cumulative sales for the first seven months of this year reached 10,000 units, a staggering drop of 57.8% compared to the same period last year. Data from the Society of Motor Manufacturers and Traders (SMMT) in the UK shows that Tesla's registrations in July fell from 2,462 units last year to 987 units, a decline of 60%.

Additionally, Tesla's registrations in France decreased by 27% to 1,307 units in July, plummeted by 86% to 163 units in Sweden, and dropped by 58% to 460 units in Belgium. However, there were bright spots in the Spanish and Norwegian markets, where registrations increased by 27% and 83%, respectively. This marks the seventh consecutive month of declining sales for Tesla in Europe.

Analysts believe that Tesla's sales decline is primarily influenced by multiple factors, including CEO Elon Musk's controversial political stance, intensified competition, and consumer uncertainty regarding electric vehicle subsidy policies.

Severe Setbacks in the German and UK Markets

As the largest automotive market in Europe, Germany has seen particularly weak performance from Tesla.

KBA data shows that Tesla's sales in Germany in July were only 1,110 units, a staggering year-on-year drop of 55.1%, with cumulative sales for the first seven months falling to 10,000 units, a decline of 57.8%.

However, the overall demand for electric vehicles in the German market remains strong. The total number of newly registered electric vehicles in July increased by 58% year-on-year to 48,614 units, highlighting Tesla's disadvantage in the competitive landscape.

The situation in the UK market is similarly bleak. According to data from the SMMT, Tesla's registrations in July were 987 units, down 60% from 2,462 units in the same month last year, reversing the 14% year-on-year growth trend seen in June.

Overall vehicle registrations in the UK fell by 5% year-on-year to 140,154 units in July, but Tesla's decline far exceeded the market average. The uncertainty surrounding the government's new electric vehicle subsidy policy has also impacted consumer purchasing decisions.

Multiple Challenges Confronting Tesla, Musk Receives New Compensation Incentive

In stark contrast to Tesla, Chinese electric vehicle manufacturer BYD has performed strongly in the European market. BYD's sales in Germany surged nearly fivefold to 1,126 units in July, while registrations in the UK increased more than fourfold year-on-year to 3,184 units, demonstrating the rapid rise of Chinese brands in the European market.

The challenges facing Tesla come not only from market competition but also from CEO Musk's controversial political stance. According to a June study by the Electric Vehicle Intelligence Report, consumer favorability towards Musk has dropped by 26%, while favorability towards the Tesla brand has decreased by 32%, reducing the likelihood of future Tesla purchases by 32%.

As previously mentioned in a report, to address these challenges, Tesla's board has approved a new compensation package of 96 million shares for Musk, aimed at "motivating and focusing" the billionaire CEO to revitalize the company's performance. Musk had previously warned that Tesla would face "several tough quarters."