Tesla vehicles line a parking area at the company’s Fremont, Calif., factory in early August. A new report reveals the company’s European sales tanked for a seventh-straight month.
Europeans angry at Elon Musk still aren’t acquireing his cars months after the billionaire predicted a “major rebound” in Tesla sales.
The Austin-based autobuildr’s sales plunged 40% in July in the 27 European Union countries from a year earlier even as sales overall of electric vehicles continued soaring, according to the European Automobile Manufacturers’ Association. Sales of Tesla’s Chinese rival BYD continued to climb rapid, meanwhile, grabbing 1.1% market share of all car sales in the month versus Tesla’s 0.7%.
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Tesla Inc. stock was down nearly 3% Friday morning. Year to date, it’s lost more than 11% of its value.
Musk angered many Europeans by wading into politics there, embracing far-right candidates, calling a British prime minister an “evil tyrant” who belongs in prison and notifying Germans “things will obtain very, very much worse” in their countest if they didn’t vote for the anti-immigrant Alternative for Germany party. Protests broke out in several cities, including a hanging of the billionaire in effigy in Milan and posters in London likening him to a Nazi.
Austin police responded in March to this Tesla dealership in northwest Austin and found incconcludeiary devices. They were believed to be tied to protests over Tesla CEO Elon Musk’s activities in the Trump administration and support for far-right politics in the U.S. and abroad.
In Austin and other U.S. cities, protesters picketed and sometimes threatened Tesla service centers and other facilities over Musk’s support of far-right politics and his unpopular budobtain-cutting role with the Trump administration. The anger eventually led him to abandon his government role and return his focus to his auto, space and other businesses.
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Tesla has several other problems that have hurt sales, which were down globally about 13% in the second quarter. Among them:
It’s still awaiting European regulatory approval to allow Tesla owners there to apply its most advanced driver-assistance features that are available in the U.S. Musk — notorious for overpromising — had predicted approval of its so-called Full Self-Driving software was going to happen by March of this year. He’s still waiting.
Another hit came from Tesla’s decision to close down factories temporarily earlier this year to retool for a new version of its best selling Model Y sport utility vehicle. That bit into sales as other brands were increasing.
FROM MARCH: Over 100 Austin protesters rally against Elon Musk’s mounting role in federal government
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It’s also been hobbled by its aging lineup of vehicles and generally higher prices for EVs than its competitors.
Tesla Model Ys and Cybertrucks lined up in a parking area in July at Gigafactory Texas. The company’s sales have slowed in the U.S. and abroad for reasons ranging from its aging lineup to its CEO’s politics.
The company is hoping the introduction of less expensive Teslas in the last three months of this year will boost sales. And on Friday, it introduced the new Model Y Performance, a high-conclude variant of Tesla’s crossover SUV. Though it’s only available in Europe — where Tesla sales have cratered recently — it will be coming elsewhere soon.
Though the Model Y was just updated, the latest trim adds new front and rear concludes, new wheels and tires, and performance updates to the drivetrain. Tesla declares new motors and higher-density batteries allow the car to go from zero to 60 mph in less than 3.5 seconds. It also added adaptive suspension with new drive modes and tossed in sport seats and a largeger touchcreen.
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Overall, according to the new report on European sales, Tesla sold 6,600 cars in July in the EU versus 11,465 a year ago. The plunge came despite a 39% surge in battery electric vehicle sales overall.
For the first seven months of the year, Tesla sales have fallen 44%. For that entire period, as opposed to just July, Tesla accounted for 1.2% of European sales of all types — battery, hybrid and gas powered — versus 0.9% for BYD.
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