February proved to be a challenging month for Tesla (TSLA.O) in the European market, with sales figures plummeting across several countries. Data released this week revealed a significant drop in registrations, raising questions about the brand’s performance and consumer loyalty.
Germany, a key market for electric vehicles, saw the most dramatic decline, with sales plummeting by 76%. This follows a 60% drop in January. Other European nations also reported substantial decreases: sales were down 24% in the Netherlands, 42% in Sweden, 48% in both Norway and Denmark, 45% in France, 55% in Italy, 10% in Spain, and 53% in Portugal.
Outside of Europe, Australia reported a significant 66% drop in Tesla registrations. Globally, Tesla’s sales of China-produced cars declined by 49%, facing increased competition from domestic rivals.
While the overall trend pointed downward, Britain offered a contrasting picture. Tesla sales in the UK experienced a 21% increase last month. However, this growth lagged behind the 42% overall surge in battery electric vehicle sales in the region.
Industry analysts suggest that factors such as the company’s CEO’s political affiliations may have impacted sales. Elon Musk’s support of certain political parties in Europe has been speculated as a possible factor.
Despite the challenges faced by Tesla, the broader electric vehicle market continues to grow. In Germany, overall EV sales rose by 30.8% in February.
In the UK, new car sales dipped 1% overall, new EV sales now account for one in four new cars sold, a sign of the ongoing transition towards electric vehicles. Meanwhile, Chinese automakers, such as Chery, are making gains in the UK market.
Reporting by DhanushVignesh Babu and Anandita Mehrotra in Bengaluru, Alessandro Parodi in Gdansk; Additional reporting by Christoph Steitz in Frankfurt and Toby Sterling in Amsterdam; Editing by Shilpi Majumdar, Janane Venkatraman, Nick Carey, Louise Heavens and Christina Fincher
