Overview

• Tesla’s July registrations in Europe fell 41.6% year-on-year and are down 34.3% through July, with a 45% drop across ten key markets accounting for more than 80% of its EU, UK and EFTA first-half sales.
• Chinese rival BYD capitalized on Tesla’s weakness with UK registrations rising more than fourfold to 3,184 units and Germany’s rising nearly fivefold to 1,126 vehicles in July.
• Consumers have staged protests and boycotts over Elon Musk’s endorsement of far-right political figures, contributing to eroding brand enthusiasm in Europe.
• Tesla has rolled out new purchase incentives and a refreshed Model Y while its board awarded Musk a 96 million-share package valued at about £29 billion to bolster his focus on reversing sales declines.
• Tesla is banking on regulatory approval for its Full Self-Driving system as a key catalyst to revive its European market performance.