Tesla’s high-profile robotaxi test in Austin may have generated headlines, but new data shows deeper trouble brewing beneath the surface of its core electric vehicle (EV) business—especially in Europe.
According to fresh figures from the European Automobile Manufacturers Association (ACEA), Tesla’s EV registrations across Europe fell by 27.9% year-over-year in May, dropping to 13,863 units. This stands in stark contrast to the overall European EV market, which grew 25% during the same period.
May marks the fifth consecutive month of declining Tesla sales in Europe, although the fall was less dramatic than April’s 49% plunge. So far in 2024, Tesla’s European registrations are down 37.1%, totaling 75,196 units.
Country-specific data paints an even bleaker picture:
- France: down 67%
- Sweden: down 53.7%
- Denmark: down 30.5%
- Netherlands: down 36%
- Portugal: down 68%
The only bright spot: Norway, where Tesla saw modest gains.
Market analysts point to multiple factors behind the slump, including CEO Elon Musk’s increasingly controversial political involvement. His association with the U.S. Department of Government Efficiency (DOGE) and vocal support for right-wing figures in Europe have sparked criticism, potentially alienating environmentally and socially conscious customers—a key demographic for Tesla. While Musk has recently shifted focus back to company operations, analysts like Dan Ives of Wedbush warn that reputational damage could have lasting effects.
Tesla doesn’t release regional or monthly sales figures, so all eyes are on its Q2 delivery report. Wells Fargo analyst Colin Langan forecasts a 21% year-over-year drop in global deliveries to 343,000 units, significantly below the market consensus of 411,000. Tesla’s Q1 deliveries already missed expectations, coming in at 336,681, the lowest since Q2 2022.
Meanwhile, over in China—Tesla’s other critical market—rival BYD has begun scaling back. The company has reportedly cut night shifts and trimmed production at several factories, suggesting softening demand even as it targets a record 5.5 million units for 2024 (up from 4.27 million in 2023).
With increasing competition, market fatigue, and image concerns mounting, Tesla’s upcoming Q2 performance could prove pivotal in determining whether the company can maintain its edge in a rapidly evolving and maturing EV industry.
