❓WHAT HAPPENED: Tesla’s sales in Europe have dropped for five consecutive months, even as overall electric vehicle (EV) sales in the region have increased.
👤WHO WAS INVOLVED: Tesla, Elon Musk, European and Chinese EV manufacturers, and AJ Bell investment director Russ Mould.
📍WHEN & WHERE: The sales decline occurred over the past five months in the European Union (EU) and United Kingdom.
💬KEY QUOTE: “Musk’s outspokenness is becoming a liability for Tesla shareholders.” – Russ Mould.
🎯IMPACT: Tesla’s European market share has fallen to 1.2 percent, and its stock has experienced significant volatility due to various factors, including Elon Musk’s public statements.
Tesla has experienced a significant decline in sales across Europe, marking five consecutive months of falling numbers. This comes despite an overall increase in electric vehicle (EV) sales in the region, which rose by 27.2 percent during the same period.
The company saw a 27.9 percent year-on-year drop in sales through May, reducing its market share in Europe to just 1.2 percent. Analysts point to an ageing model range and rising competition from European and Chinese manufacturers as key factors. Tesla released a revamped Model Y in March to address these challenges.
Additionally, protests against owner Elon Musk have been held globally, with some Tesla owners selling their vehicles. Footage of Tesla’s driverless vehicles reportedly operating erratically has also drawn scrutiny from a U.S. safety body. Investment director Russ Mould stated, “Musk’s outspokenness is becoming a liability for Tesla shareholders.”
Elon Musk’s public exchanges have contributed to Tesla’s stock volatility. A social media dispute with President Donald J. Trump in June led to a $99 billion loss in Tesla’s market cap in a single day. Musk later expressed regret over some of his comments.
The news is just the latest blow for Musk, who also saw a major failure in his company SpaceX recently, when the company’s Starship spacecraft exploded in Texas.
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