Tesla Sales in Sweden Drop 87%

"Tesla Inc. ( NASDAQ: TSLA) Model Y sales across Europe were rough for the U.S.-based electric vehicle (EV) maker. They were worst in Sweden, where sales fell 87% year over year in August. The Model Y was the best-selling car in Europe in 2023. Overall, Tesla sales across all models dropped sharply in Denmark, the Netherlands, and France, but they rose in Spain, Portugal, and Norway."

"Observers made two points: Elon Musk's relationship with Donald Trump has hurt Tesla's image, and the markets are awash in inexpensive used Teslas. The used inventory is a problem in America as well. Musk has to solve the dual problems of his tarnished image and strong competition. There is no solution for the first problem, at least not in the short term. The second involves discounts and the addition of revolutionary features. The most likely large change in features is a fully self-driving car."

"A recent Wall Street Journal article reported that there are dozens of Chinese EV makers. Some will fold because of the tremendous competition. Others will eventually follow giant BYD into Europe, Southeast Asia, and South America. U.S., Japanese, and European fossil-fuel car companies have tried to compete with Tesla. So far, all they have to show is tens of millions in losses. Yet, they keep throwing EVs into the market. Bit by bit, they are nibbling away at Tesla's market share."

Model Y sales across Europe plunged in several markets, with Sweden down 87% year over year in August despite the Model Y being Europe's best-selling car in 2023. Overall Tesla registrations dropped sharply in Denmark, the Netherlands, and France while rising in Spain, Portugal, and Norway. Observers cite Elon Musk's relationship with Donald Trump and an abundance of inexpensive used Teslas as key factors affecting demand. Tesla faces dual challenges of reputational damage and intense competition, including dozens of Chinese EV makers and legacy automakers losing money while incrementally eroding market share. Potential responses include deeper discounts and pursuit of fully autonomous driving.

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