Tesla Inc. is facing weakening sales in its primary markets of the US, Europe, and China as electric vehicle competition intensifies. October figures show sharp drops, including 48.5% in Europe and 24% in the US, despite rising overall EV adoption. Rivals like BYD and Volkswagen are gaining ground with more affordable models.
Tesla Inc. (NASDAQ:TSLA) reported declining sales across its three largest markets in October, signaling challenges in the global electric vehicle landscape. In Europe, sales plummeted 48.5% year-over-year, according to the European Automobile Manufacturers' Association, even as regional EV sales rose 26%. Year-to-date, Tesla's volumes in Europe have fallen about 30%, as competitors expand their offerings.
Manufacturers such as BYD and Volkswagen have introduced broader EV lineups at lower prices, appealing to buyers prioritizing affordability and variety. This shift has eroded Tesla's market share in a region where EV adoption is accelerating.
In China, the world's biggest EV market, Tesla's sales decreased 8.4% year-over-year through October. Domestic brands and new entrants have ramped up product launches and aggressive pricing, creating a tougher environment for foreign players like Tesla.
The US, Tesla's home base, saw a 24% sales drop in October, partly due to the end of a federal EV tax credit in late September. This led to a surge in third-quarter deliveries as buyers rushed to claim the incentive, followed by softer demand.
Looking ahead, Visible Alpha projects a 7% decline in Tesla's global deliveries for 2025, after a 1% drop in 2024. This contrasts with earlier optimism from CEO Elon Musk, who anticipated 20% to 30% growth. Recent updates indicate that outcomes will hinge on economic factors, production ramps, and advances in autonomous driving.