Tesla's vehicle registrations in Europe dropped sharply in November, with a 49% decline reported by the region's automotive association. Key markets like France and Sweden saw significant falls despite the launch of a new Model Y range. Growing Chinese competition and an aging lineup contributed to the sales rout.
Tesla's sales in Europe took a severe hit in November, as new registrations plummeted 49% from the previous year, according to data from the European automotive association. This marked a stark contrast to rival BYD, which saw a 210% increase in the same period. In specific markets, France and Sweden experienced particularly steep declines, underscoring weakening demand across the continent.
The downturn persists despite Tesla's recent introduction of an updated Model Y range, aimed at refreshing its offerings. Analysts point to several factors driving the loss of market share: intensifying competition from Chinese entrants like BYD, Tesla's aging vehicle lineup, and Elon Musk's vocal support for far-right politics, which has alienated some European consumers.
This European slump is part of broader challenges for Tesla. In the U.S., its electric vehicle market share has fallen from 80% in 2019 to about 45% today. While China sales hit a three-year low in October, they rebounded 9.9% year-over-year in November following the launch of a longer-range rear-wheel-drive Model Y variant.
Tesla's third-quarter results showed mixed signals, with deliveries up 7% to 497,099 units but production down 5% to 447,450 units. Revenues rose 12% to $28.10 billion, though non-GAAP earnings per share dropped 31% to $0.50, missing estimates. Wall Street maintains a cautious "Hold" consensus on the stock, with a price target of $385.69 implying a 10.2% downside from recent levels.
As competition heats up from players like Alphabet's Waymo in autonomous driving, Tesla faces pressure to address its product gaps, including the lack of affordable options like a $25,000 sedan or $35,000 family SUV.
