Electric vehicle giant Tesla experienced steep sales drops across several key European markets in October, diverging sharply from the continent’s booming overall EV sector amid increased competition and growing public criticism of its CEO.
The company’s car registrations, a key sales indicator, plummeted significantly last month compared to September. Sweden saw an 89% decline, Denmark an 86% fall, Norway a 50% decrease, and Spain a 31% reduction.
This severe downturn stands in stark contrast to the broader European electric vehicle market. During the same period, the overall EV sector on the continent expanded by a robust 119%.
Analysts largely attribute Tesla’s struggles to two primary factors. Fierce competition from Chinese EV manufacturers, who are introducing newer and more competitively priced models, is eroding Tesla’s market share.
Additionally, a growing negative reaction to CEO Elon Musk’s public persona appears to be alienating a segment of the company’s customer base. Musk’s high-profile involvement in political issues in both the United States and Europe is cited as a significant deterrent.
This public perception issue has also affected Tesla in the United States, where Musk’s political activities may have alienated a considerable portion of its user base, historically associated with a more liberal demographic. Separately, Musk faces controversy over the largest executive remuneration package in corporate history.
Despite a 12% year-on-year revenue increase in the third quarter, Tesla’s operational profit declined by approximately 40% during the same period, signaling mounting pressure on the company’s profitability.
While the European outlook appears challenging, Tesla did see a modest increase in sales in France, rising by about 2.4% in October. This marked one of the few positive results in the region.
The sharp declines in October followed a relatively positive September for the automaker, which had recorded modest growth in markets like Norway and Spain just a month prior. In the U.S., Tesla experienced a sales surge last quarter, which many analysts attribute to the impending expiration of an electric vehicle tax credit.