Tesla registrations in several key European markets plunged in November from a year earlier as the US electric vehicle (EV) maker continued to struggle to stem market share losses despite rolling out new versions of its best-selling Model Y.
Norway, however, bucked the trend with record sales in the month. The country, Tesla’s first market outside North America more than a decade ago, has been the company’s second biggest European market after Britain so far this year.
Monthly registrations, a proxy for sales, slumped 58% in France to 1,593 vehicles sold, 59% to 1,466 cars in Sweden, 49% to 534 cars in Denmark, 44% in the Netherlands to 1,627, and 9% in Spain to 1,523, official data shows.
But in Norway, they almost trippled to 6,215 cars, beating the country’s annual sales record with one month to spare.
Its overall market share in the continent was down to 1.6% in January-October, from 2.4% in the same period last year.
Musk’s right-wing praise
Tesla’s Nasdaq-listed shares were 1.4% lower in pre-market trade on Monday.
The company’s slowdown in Europe began late last year after its CEO, Elon Musk, publicly praised right-wing political figures, setting off protests across the region.
In November, a large fire at a Tesla dealership in Southern France prompted investigators to launch a criminal probe, local media reported.
Musk has toned down political commentary since stepping down from the US Department of Government Efficiency, but Tesla’s European business has not recovered.
Novelty worn off
Analysts pointed to growing competition in a crowded European market, especially by new entrants from China, and Tesla’s ageing lineup.
Consumer sentiment has weakened. Data analytics and advisory firm Escalent said in a study that 38% of respondents to a survey in Europe’s five largest car markets feel the brand’s novelty has worn off, and it trails competitors on design, quality and emotional appeal.
Many European buyers are also increasingly choosing hybrid cars over fully electric models, French car body PFA said.
November sales at Chinese EV maker BYD, which unlike Tesla also sells hybrids and plug-in hybrids, jumped 268% to 2,934 vehicles in Spain and 65% to 570 in the Netherlands, their best month on record in the country.
Mostly lower Model Y sales
While Musk spent much of this year focused on Tesla’s robotics pursuits and winning shareholder approval for his $1-trillion pay package, his brand tried to win back buyers by launching a refreshed Model Y earlier this year.
Only a handful of cheaper Model Ys, priced at €40,000 in Germany, had reached European markets at end-November.
Sales of the Model Y, which in 2023 was Europe’s best-selling model, dropped 67% in Sweden, 62% in the Netherlands, 55% in Portugal and 74% in Denmark. They jumped 19% to 3,648 cars in Norway.
