Tesla’s sales crisis continued in some European markets in August. Data from France, Denmark, and Sweden showed that the company failed to recover even with the revamped Model Y.
In France, Tesla registrations fell by 47.3% compared to the same period last year, while in Sweden sales declined by over 84%. Denmark also experienced a 42% drop. In contrast, Tesla sales in Norway increased by 21.3%, but sales of its Chinese competitor BYD surged by 218%. According to experts, Tesla’s problems are multifaceted: its narrow and aging product range, the lack of new mass-market models since 2020, increasing Chinese competition, and aggressive moves by traditional automotive giants. In Europe, Tesla’s market share fell from 2.5% to 1.7% in the first half of this year. In addition, Elon Musk’s support for far-right parties and his funding of Donald Trump’s election campaign have generated strong consumer backlash against the brand. According to a study, more than half of those surveyed stated that they would not buy a Tesla because of Musk.
Tesla’s challenges are not limited to competition and image. The sharp price reductions it launched in 2023 have eroded the value of used Teslas. While used car sales in the UK increased by 270% in July, the price of a used Model Y has fallen by 41% in a year.
