Tesla Inc.’s sales have fallen in 10 of the last 12 months in Europe, with the carmaker struggling mightily at the beginning of this year.
The Elon Musk-led company registered 16,888 new cars in February, down 40% from a year ago, according to the European Automobile Manufacturers’ Association. Tesla’s sales plunged 43% in the first two months of the year, deviating from the 31% rise in industrywide EV registrations.
The figures show Tesla dug a deep hole for itself before the company started deliveries of the redesigned Model Y — its most popular vehicle — in the first week of March. The carmaker is counting on the refreshed model to drum up business even as Musk, its chief executive officer, has become a more polarizing figure as a top adviser to US President Donald Trump.
Musk’s detractors have targeted Tesla stores, charging stations and even its customers’ vehicles early in Trump’s second term — both in the US and abroad. The billionaire’s polling numbers took a hit as he tried to influence voting in Germany’s federal election last month, and he’s since called for the US to pull out of NATO and stop paying for the defense of Europe.
Overall new-car sales in the region dipped 3.1% in February as uncertainty about the economy prompted consumers to hold back on bigger purchases. The drop was driven by a 24% decline in registrations of gasoline-powered vehicles and a 28% decrease in those with diesel engines.
Europe’s carmakers are facing another tough year in their home market as a prolonged downturn in the region’s biggest economies weighs on consumer confidence. At the same time, the threat of US tariffs and intense competition from Chinese automakers led by BYD Co. are adding to the pressure.
Tesla’s registrations in March and the following few months will offer investors more clarity as to how much of a role Musk’s politics are playing in its sales declines.
Changing over to the new Model Y required pausing production at factories around the world early this year, including at the company’s assembly plant outside Berlin. Those disruptions cost the company weeks of output and either lost or deferred sales.
Meanwhile, European manufacturers are trying to capitalize on Tesla’s decline by offering several cheaper battery-powered models. They include Renault SA’s €25,000 ($26,990) R5 E-Tech and Stellantis NV’s €23,300 Citroën ë-C3 city car. These vehicles also are meant to compete with offerings from Chinese manufacturers pushing into the region.
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