Tesla’s sales collapse continues in Europe’s biggest EV markets

[FLENSBURG] Tesla’s sales slump is dragging on across almost all of Europe’s biggest electric vehicle markets, costing the company significant share in countries seeing stronger EV demand.

New Tesla vehicle registrations dropped 39 per cent last month in Germany and plunged 56 per cent through the first eight months of the year, the Federal Motor Transport Authority said on Wednesday (Sep 3).

The Elon Musk-led carmaker also posted steep August sales declines in France, Belgium, Denmark and Sweden.

Norway has been the exception, with registrations rising 21 per cent last month and 26 per cent year to date.

Tesla’s worldwide vehicle deliveries fell 13 per cent in the first half of the year, putting the company on course for its second consecutive annual decline.

While the carmaker is expected to get a boost this quarter from US consumers accelerating EV purchases before federal tax credits expire, that upside could be capped by weakness in both Europe and China, where factory shipments continue to drop.

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Musk and other top executives blamed Tesla’s early-year sales shortcomings on transitioning the Model Y – its top-selling vehicle – to a new design, which temporarily disrupted production.

But roughly six months since the company started delivering the new Model Y in Europe, the vehicle is struggling in several key markets. Registrations plummeted 87 per cent in Sweden and 47 per cent in Denmark last month.

In Germany, battery-electric vehicle registrations soared 46 per cent industrywide in August, continuing a trend of strong EV sales even as Tesla struggles.

Across all of Europe, BEVs were up 26 per cent during the first seven months of the year, even as Tesla sales fell 40 per cent. BLOOMBERG