Tesla’s performance in Europe at the beginning of the second quarter has been disappointingly slow, contrary to CEO Elon Musk’s expectation of a strong improvement compared to the initial months of the year. As per reports by the European Automobile Manufacturers’ Association, only 13,951 Tesla vehicles were registered in April, marking a 2.3% decline from the preceding year and an all-time low since January 2023. Unlike the overall growth in battery-electric vehicle sales, which saw a 14% increment, Tesla, unfortunately, lagged behind.
Tesla’s shipments from its Shanghai factory also followed a similar downtrend in contrast to the considerable rise in China’s plug-in car industry. During the first quarter of 2023, numerous challenges such as Red Sea shipping disturbances and suspected destruction of power lines near its German SUV factory affected Tesla’s productivity. Musk, during an earnings call, assured investors of a prompt recovery from these hindrances.
The withdrawal or minimisation of electric vehicle subsidies by countries like Germany and Sweden in the past few months has resulted in a slowdown of sale growth across Europe. This trend has compelled manufacturers such as Volkswagen and Mercedes-Benz to reconsider their product strategies. Volkswagen is expected to launch more plug-in hybrids while Mercedes plans to extend combustion car production to the 2030s.
While many car brands have been grappling with the withdrawal of incentives in Germany, Europe’s largest car market, Tesla fared worse than others last month. Overall, EV registrations remained relatively stable, however, Tesla’s sales saw a dramatic fall of 32%.
In the UK, Tesla’s registrations in April dropped by 25% and have nosedived 14% in the first quadrimester of the year.