Key Takeaways
1. Tesla’s new car registrations in Europe decreased by 50% in April 2024, despite overall electric vehicle sales increasing by 27.8%.
2. Tesla’s sales have been declining for several months, with drops of 50%, 47%, and 36% in January, February, and March, respectively.
3. Chinese electric vehicle manufacturers, like BYD and SAIC Motor, have benefited from Tesla’s decline, gaining market share and surpassing Tesla in sales.
4. Tesla’s market share in Europe fell to 0.7% in April 2024, down from 1.3% the previous year.
5. The launch of a new Model Y in April did not significantly improve Tesla’s sales, and CEO Elon Musk faces criticism due to his political ties.
According to recent information, Tesla has yet to change its slow start in Europe this year. The European Automobile Manufacturers Association (ACEA) stated that the American company’s new car registrations fell by 50% in April, even though electric vehicle (EV) sales in the region saw a significant increase.
Sales Trends
While the total car sales only declined by 0.3 percent, EVs actually improved by 27.8 percent compared to April 2024. In contrast, Tesla’s situation was quite different, as it experienced a 49 percent drop in car sales. This negative trend had been ongoing, with the company’s sales reducing by 50 percent, 47 percent, and 36 percent in January, February, and March respectively.
Competition from Chinese Brands
The decline in Tesla’s sales was taken advantage of by Chinese electric vehicle manufacturers, who gained ground due to their competitive pricing. For example, BYD surpassed Tesla in Europe in April, as per data from JATA Dynamics. Additionally, ACEA indicated that SAIC Motor sold more cars than Tesla, achieving a 24.5 percent increase. Consequently, Tesla’s market share has fallen to 0.7 percent, down from 1.3 percent in April 2024.
New Model Launch
In April, Tesla launched a new iteration of its popular Model Y in Europe, but this effort did not suffice to boost sales back to prior levels. The company is also dealing with criticism stemming from CEO Elon Musk’s close ties to the current U.S. government. Nevertheless, Musk has declared his intention to spend less time on governmental matters, focusing instead on Tesla and his other businesses.
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