Tesla sales in Europe plunged for a fifth consecutive month in May, dealing a blow to investors who had hoped anger toward CEO Elon Musk would have faded by now. According to the European Automobile Manufacturers’ Association, Tesla sales fell 28% last month across 30 European countries, despite the overall market for electric vehicles expanding sharply. This poor performance comes as a surprise, particularly after Musk had promised an uptick in sales following the retooling of Tesla’s factories to produce a new version of the Model Y.
These new models have been widely available for months, yet the anticipated boost in sales has not materialized. Tesla’s billionaire CEO, Elon Musk, had also assured investors that a cheaper Tesla model expected to be released later this year would help reverse the sales decline. Meanwhile, battery electric vehicle sales rose 25% in Europe compared to a year earlier, with the market for EVs proving particularly strong in Germany, where overall EV sales leapt 45%.
Tesla’s declining European market share
China’s SAIC Motor emerged as the big winner for the month, with its European sales of EVs and other kinds of cars jumping 38%, allowing the company to surpass Tesla’s sales in the region. SAIC sold 18,716 vehicles last month compared to Tesla’s 8,729.
This sales drop comes at a crucial time for Tesla, as the company is in the midst of launching its driverless ‘robotaxis’ service in Austin, Texas. Musk has ambitious plans to introduce the service in several other cities quickly and aims to have as many as a million automated cabs on the roads by the end of the year. While initial reviews have been mostly positive, there have been some issues reported, with a few passengers circulating videos of problems during their rides.
Federal traffic safety regulators have announced they are looking into these reports. Overall, the persistent decline in Tesla’s European sales is a significant concern for the company and its investors, especially as the competition in the electric vehicle market continues to intensify.
