The controversy over aging design, increased competition and Elon Musk have fueled a reversal of Tesla sales.
Tesla’s European sales fell 49% year-on-year in January and February, despite an increase in electric vehicle (EV) registrations.
New Tesla registrations in the European Union have dropped to 19,046 in the first two months of the year, from at least 37,000 in the same period in 2024 to 19,046 in the first two months of the year, according to a report issued by the European Association of Automobile Manufacturers (ACEA) on Tuesday.
Lobby Group said that while the US-based EV maker struggles to keep pace with its competitors, the political debate over owner Elon Musk is also affecting sales.
Tesla’s struggle has led to Tesla’s market share dropping from 2.1% to 1.1%.
In February alone, Tesla registrations fell by 1.8% of the overall market and 10.3% of the battery-electric vehicle market from 2.8% and 21.6% in the same month last year, respectively.
The aging model of the US company is considered one reason for DIP as traditional car manufacturers and new Chinese manufacturers launch new and inexpensive EVs.
Meanwhile, CEO Elon Musk has been criticized for providing vocal and financial support to far-right European groups. His role in managing President Donald Trump, who is threatening Europe in the trade war, is also seen as a factor.
Growth in the boycott movement targeting Tesla has seen Tesla dealers smash, and its stock price drop sharply, rising in the EU and in the home.
It’s packed in slow lanes
EU EV sales rose 28.4% in January and February, but there are concerns that the segment needs more support.
ACEA Director Sigrid de Vries said sales indicate that demand for television is “below the level required for a transition to zero emissions mobility to progress.”
He called for further investment in taxes and purchase incentives for consumers and charging stations. Meanwhile, Brussels is preparing to ease its emission reduction targets.
Still, hybrid electric vehicles were the most important market segment in the first two months of the year, increasing to 594,059 registrations, or 35.2% market share.
Electric vehicles – Battery Electric (BEV), Hybrid (HEV) or Plug-in Hybrid (PHEV) – accounted for 58.4% of all passenger car registrations in February, up from 48.2% in the previous year.
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