Tesla, the global electric vehicle market leader, is facing declining sales in Europe, with January figures showing a significant drop in registrations.
In Germany, Tesla's largest European market, registrations fell by almost 60% in January, with only 1,277 cars sold compared to 3,150 in January of the previous year. This decline is particularly concerning given that the overall German automotive market only fell by 2.8%, and electric vehicle sales actually increased by 53.5%.
Similar trends are observed in other European countries. France saw a 63.4% drop, the UK a 18.2% decline, and the Netherlands experienced a 42.5% decrease. Overall, Tesla sales in Europe fell by 50.4% in January compared to the previous year.
The decline is attributed to several factors, including production delays for the new Model Y, which is Tesla's most important model in Europe and globally. The company is currently transitioning to the new Model Y, which is produced in its four major factories worldwide. This shift has resulted in a production gap between the outgoing and new models, leading to a decline in sales as customers wait for the new model.
Elon Musk's recent political activities are also believed to be contributing to the sales decline. Musk's political stance has alienated some Tesla customers, and his focus on other ventures may be diverting attention from the company.