Tesla EU sales plunge 40% in July
Data released Thursday indicates that Europeans remain dissatisfied with Elon Musk and continue to refrain from purchasing his cars, despite the billionaire’s earlier prediction of a significant rebound in Tesla sales.
Tesla sales dropped 40 percent in July across the 27 European Union countries compared to the previous year, despite a surge in overall electric vehicle sales, as reported by the European Automobile Manufacturers’ Association. Sales of Chinese rival BYD surged, capturing 1.1 percent market share of all car sales in the month, compared to Tesla’s 0.7 percent. Tesla stock declined by 1.5 percent during afternoon trading on Thursday.
Musk angered many Europeans by engaging in politics, endorsing far-right candidates, labeling a British prime minister an evil tyrant deserving of prison, and warning Germans that their situation would deteriorate significantly if they did not support the anti-immigrant Alternative for Germany party. Protests erupted in multiple cities, featuring a hanging of the billionaire in effigy in Milan and posters in London comparing him to a Nazi.
The company faces several other issues that have contributed to its plunging sales. Shareholders have filed a lawsuit against Elon Musk and Tesla for allegedly concealing risks associated with the Robotaxi project. The company is still awaiting European regulatory approval for Tesla owners to access its most advanced driver-assistance features available in the US, a significant draw for buyers. Musk had predicted that approval of its so-called Full-Self Driving software would occur by March of this year. Tesla faced another setback with its decision to temporarily close factories earlier this year to retool for a new version of its best-selling Model Y sport utility vehicle.
The company anticipates that the launch of more affordable Teslas in the final quarter of this year will enhance sales. The company sold 6,600 cars in July in the EU, down from 11,465 a year ago. The decline occurred even with a 39 per cent increase in overall battery electric vehicle sales. Tesla sales have decreased by 44 percent in the first seven months of the year. Throughout that entire period, rather than just in July, Tesla remained the leader in the EV market. It represented 1.1 percent of European sales across all categories – battery, hybrid, and gas-powered – compared to 0.9 percent for BYD.
