Tesla’s European Market Meltdown: How Model Aging and Musk’s Politics Are Hurting Sales

Tesla’s Sales Decline in Europe by Double Digits
Multiple Factors

The latest European vehicle sales statistics have delivered some startling news. Tesla’s sales have dropped nearly 20%. Analysts suggest this decline is due to a mix of factors, including a lack of innovation in Tesla’s electric vehicle models and a tarnished brand image.

According to the electric vehicle statistics site EU-EVs, 147,581 Tesla vehicles were registered across 15 European countries from January to July 2024. This marks a decrease of over 30,000 units compared to the 179,358 registrations during the same period in 2023, representing a significant drop of 17.7%.

Tesla Falls from 1st to 8th Place in a Year
Is Model Aging the Cause?

Until March 2024, Tesla’s vehicle registration numbers were similar to those in 2023. However, starting in April 2024, a noticeable gap began to open up compared to the previous year. According to Carscoops, an American automotive media outlet, the Tesla Model Y ranked 8th in new vehicle sales across the European Union and the UK.

Since its launch in the European market in 2020, the Model Y was the top-selling car during the first half of 2023. Yet, just a year later, it has dropped to 8th place with 101,181 units sold. Given the lack of significant updates over the past four years, the European auto industry now sees the Model Y as outdated compared to newer, more competitive electric vehicles released in 2024.

Tesla’s recent moves have sparked a backlash from the European industry

Negative perceptions of the Tesla brand and Elon Musk also contribute to the decline in Tesla’s performance in Europe. In 2024, an environmental group in Germany led a high-profile protest against Tesla to protect local forests, drawing significant media attention across Europe.

Tesla had aimed to expand its electric car factory near Berlin, Germany. However, this plan faced opposition from residents and environmental groups who protested by occupying the surrounding forest. Additionally, Tesla’s Berlin factory experienced a temporary shutdown in March 2024 due to a fire at a nearby transmission tower.

CEO’s political comments spark boycott of companies

Facing ongoing opposition from environmental groups and residents, Tesla reduced its planned site expansion by half to appease European consumers. Despite this, Musk’s political comments have compounded the brand’s challenges. Ahead of the U.S. presidential election in November 2024, Musk has publicly supported former President Donald Trump.

As a result, European pharmacy chain Rossmann has announced that it will cease purchasing Tesla electric vehicles. Rossmann, a German-based company with 4,700 stores and 62,000 employees across Europe, typically buys about 180 company vehicles annually. The company’s decision is expected to have a significant impact beyond just the number of cars purchased.