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Tesla’s European Sales Decline Persists as Electric Vehicle Market Grows

Competition from Chinese EV models coupled with Elon Musk’s political controversies has driven Tesla’s market share to 1.2%.

Model Y cars are pictured during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS/File Photo
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The drop in demand for Tesla cars has been linked to its ageing fleet, competition, and consumer distaste for owner Elon Musk's (L) work in the Donald Trump (R) administration

Overview

  • In May, Tesla’s new car sales in Europe fell 27.9% from a year earlier.
  • Tesla has now seen five consecutive months of sales declines in the region.
  • Overall European car registrations rose 1.9% in May, led by a 27.2% jump in fully electric vehicles.
  • Hybrid-electric models accounted for 35.1% of EU registrations through May, while battery-electric cars made up 15.4%.
  • Tesla plans to roll out its updated Model Y in Europe this month to try to reverse the downturn.