Tesla Faces European Sales Turbulence Amid Market Shifts
It looks like Tesla is having some turbulence across the water. The fresh numerical figures put out by the European Automobile Manufacturers Association do cast a pallor: Tesla's sales in Europe and the U.K. almost halved in April, representing a drop of 49% when compared with the same period last year. This means that in all, 7,261 vehicles were sold across the European Union, the European Free Trade Association countries, and the U.K.
A New Model Y Cannot Stop the Drop
What makes this collapse in sales quite eyebrow-raising is the fact that it has followed closely the launch of another version of the popular Model Y. Traditionally, the launch of a new model acts like an electromagnetic pulse on consumer interest. Apparently, the reverse seems to be the case here.
In the wider automotive arena in Europe, it doesn't seem like Tesla's competition is facing the same sort of dramatic fall-off. There are some who wonder whether something other than simple market conditions might be at work here. Others wonder where their view of the brand in Europe is more affected by their CEO Musk's political statements or alleged alliance with the likes of Donald Trump.
Woe for Tesla Worldwide?
And Musk's endeavors in everything ranging from cryptocurrencies to satellite networks have barely spared Europe from lay-offs lately. With the latest low of just over 336,681 deliveries worldwide, this sales dip in Europe is hardly isolated for the electric vehicle maker. It has been a few months of poor sales numbers for Tesla in several regions. Implications were that these lay-offs involved decommissioning employees from dozens of federal programs and agencies, with Musk's public portrayal being so poor that he himself threatened to withdraw participation from Tesla.
The European Car Market Gets Broader: The EV Are Still Ascending, The Hybrids Soar
To pin these variables or backtrack through a way-what about the rest of the European car setting? The fluctuation in registrations for newly sold cars across the EU, U.K., and EFTA countries in April dropped 0.3% year-on-year at 1,077,186 units. According to Jato Dynamics, the most negative change was met by regular gasoline and diesel vehicles.
Nevertheless, the EV portion, while an extremely low one on the total market, is still gaining traction. EV sales in April counted 184,685 units, indicating a growth of 27.8% when compared to last year's numbers. However, hybrid vehicles were the top winners of April with an unusual sales gain of 31%.
Chinese EV Makers Begin to Lane in
Another rather interesting trend is beginning to emerge. Data's release last week from the market research house Jato Dynamics indicates notable incursion into Europe by Chinese manufacturers like BYD, even under the EU tariffs. Registration of EVs by Chinese manufacturers saw a high of 59% to almost 15,300 units. Thus, the dynamics are changing rather swiftly with a change of scenery in the European EV market.
