Tesla is experiencing a sharp decline in sales in Europe, with registrations dropping by 45% year-on-year in January 2025, amidst overall electric vehicle sales increasing by 37%. The reductions are particularly notable in major markets like Germany, where sales fell nearly 60%. Analysts suggest that while data fluctuates, incentives offered by Tesla might indicate a slowing demand, compounded by increasing competition from brands like SAIC Motor, which are successfully gaining market share by adapting strategies to meet regional demands.
Tesla's sales plummeted 45% in Europe, contrasting starkly with a 37% overall growth in electric vehicle registrations, signaling significant challenges for the automaker.
The drop in Tesla sales comes amid rising competition and public backlash against CEO Elon Musk's political engagement, complicating the brand's standing in the market.
Mark Wakefield from AlixPartners suggests month-to-month data is variable, yet Tesla's need for incentives implies broader issues with demand, heightened by competition from growing Chinese automakers.
SAIC Motor experienced a significant sales rise amid Tesla's decline, showcasing a shift in the European EV landscape where competition is increasingly heating up.
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