Tesla's European sales drop 50% due to backlash against Musk and increased competition from hybrids and Chinese brands

Tesla faces a 50% sales drop in Europe due to Elon Musk's controversies and competition.

: Tesla's sales in Europe plunged by 50% in April, attributed to CEO Elon Musk's political dealings and controversies. Despite an overall rise in electric vehicle sales across Europe, Tesla's share reduced from 1.3% to 0.7%. Significant factors include the boycott against Musk, lack of new models, and preference for hybrid cars over fully electric ones. Increasing competition from Chinese manufacturers such as BYD, which surpassed Tesla in sales, further compounded the downturn.

Tesla's sales in Europe saw a significant decline of nearly 50% in April, and the company experienced a reduction in its market share from 1.3% to 0.7% even as the general electric vehicle (EV) sales in Europe surged by 34.1% year-over-year. According to the European Automobile Manufacturers' Association (ACEA), Tesla's April sales in Europe reached 7,261 units, a notable decrease from the 14,228 units sold in the same period the previous year. Key contributors to this sharp downturn include a backlash against Elon Musk, fueled by his association with Donald Trump and his role in the Department of Government Efficiency (DOGE). An incident illustrating the backlash occurred when a Tesla dealership in Rome was set on fire on March 31, destroying 17 vehicles, with an anonymous communiqué blaming "Musk's fascist project." The older lineup of Tesla vehicles and the lack of new model releases also hindered their market performance.

Tesla's trouble in Europe is partly attributed to the continent's strong preference for hybrid vehicles. Currently, hybrids make up more than 35% of the European market, whereas Tesla exclusively offers fully battery-operated vehicles, putting the automaker at a disadvantage. This preference, along with increasing competition from Chinese automakers such as BYD, further exacerbates Tesla's struggles—BYD exceeded Tesla's electric car sales in Europe for the first time. Tesla's only significant new release has been the upgraded Model Y SUV, and its much-anticipated Cybertruck is still not available in the European market.

These challenges, combined with the growing competitive landscape and changing consumer preferences, place Tesla in a precarious position. Tesla's board has been seeking a new CEO over concerns about Musk's time investment in his role as the head of DOGE according to the Wall Street Journal, although such reports have been publicly denied by Musk and Tesla.

Musk's political moves and extracurricular involvements have sparked significant controversy, triggering both public protests and discussions about a potential change in leadership to refocus on Tesla's operations. However, Musk has ensured that he will cut back his DOGE duties to allocate more time for Tesla's priorities.

Reports stated that Tesla faced additional setbacks, like plummeting Cybertruck sales and the cancelation of its $16,000 range extender due to low interest. This period is concluded by a difficult month for Tesla, as sales challenges and other operational hurdles accumulate.

Sources: European Automobile Manufacturers' Association, Wall Street Journal, TechSpot, ACEA

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