Elon Musk’s Tesla has experienced a 40 percent plunge in sales throughout Europe, with the EV giant facing growing competition from Chinese EV company BYD.
CNBC reports that Elon Musk’s Tesla has suffered a 40 percent plunge in sales in Europe for the month of July compared to the same period last year, according to data released by the European Automobile Manufacturers Association (ACEA) on Thursday. The company recorded only 8,837 new car registrations in Europe last month, marking its seventh consecutive month of declining sales in the region.
In stark contrast, Chinese rival BYD has enjoyed a surge in its European sales, with new car registrations jumping by 225 percent year-on-year to reach 13,503 in July. This impressive growth comes as BYD continues to expand its presence in Europe, opening new showrooms and launching competitively priced models over the past two years.
Tesla’s declining sales in Europe have been attributed to several factors, including intense competition from Chinese automakers, a lack of major updates to its vehicle lineup, and potential reputational damage stemming from CEO Elon Musk’s political activity in Europe, where he actively supports sovereigntist parties like Germany’s AfD — upsetting his core leftist customers.
The company’s struggles are not limited to Europe, as Tesla’s global auto sales revenue fell in the second quarter of this year. Musk himself warned that the automaker “could have a few rough quarters” ahead. To address these challenges, Tesla has announced plans to develop a more affordable electric car, with volume production expected to begin in the second half of 2025.
However, Tesla’s management has been trying to shift the focus away from the company’s core automotive business to AI and robots. “They talk about almost everything else but the car they’re selling at a slower pace now because effectively, the age of their vehicle is much higher than the competition and the latest products have not been as successful as hoped, notably the Cybertruck,” said Thomas Besson, head of automobile sector research at Kepler Cheuvreux.
Chinese automakers have been making significant inroads into the European market, with brands like BYD leading the charge. In the first half of 2021, Chinese brands achieved a record market share of more than five percent in Europe, according to data from JATO Dynamics.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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