Can Elon Musk steer Tesla back on track? April sales crashed across Europe as political drama, Chinese rivals, and ageing models stall the EV giant’s momentum.
Tesla’s car sales dropped sharply across several European countries in April, raising concerns about the electric vehicle (EV) maker’s future performance. This comes right after the CEO, Elon Musk, pledges to refocus on the company after a controversial stint in US politics.
According to official data released on Friday, Tesla’s sales fell by over two-thirds year-on-year (YoY) in Sweden, Denmark, and the Netherlands. France saw a 59% decline, while Norway reported a 38% drop. These markets, though not Tesla’s largest, are among the first to report monthly figures, potentially signalling wider troubles ahead.
Sweden recorded the most dramatic decline, with Mobility Sweden reporting an 81% fall. The Netherlands and Denmark followed with drops of 74% and 67%, respectively. Meanwhile, France’s ongoing slump marked its fourth straight month of falling Tesla sales.
While some of the downturn is attributed to Musk’s controversial political involvement, sparking protests and consumer boycotts, industry analysts note that other factors are also at play.
These include an ageing vehicle line-up, aggressive pricing and innovation from Chinese rivals like BYD, and temporary production halts as Tesla retooled its Model Y factory.
Germany, where April data is still pending, already saw a 62% sales decline in the first quarter following Musk’s provocative remarks during the European election campaign.
Another challenge lies in Tesla’s delayed regulatory approval for its semi-autonomous driving features in Europe, limiting its appeal compared to markets like the US and China.
Despite these setbacks, there was a modest sales increase in Italy, where registrations rose by 3% last month.
The disappointing results come just over a week after Musk said he would scale back his work with the US Department of Government Efficiency to focus more on Tesla, following mounting investor pressure. Still, the road ahead remains uncertain with Q1 profits down 71%.
