Tesla (TSLA) Faces Sales Decline in Europe Amid Rising Competition

Recent data indicates a significant decline in Tesla’s (TSLA, Financial) sales across Europe, with a notable 81% drop in Sweden, marking the lowest in two and a half years. This downturn is attributed to the increasing preference for Chinese electric vehicles among Europeans and resistance to Tesla’s CEO Elon Musk due to his political views. Tesla’s sales have decreased for four consecutive months in most European regions.

While the overall European electric vehicle market grew by 28% in the first quarter, Tesla’s sales fell by 37.2%. In April, the company’s new car sales in Sweden plummeted by 80.7%, reaching the lowest point since October 2022. Sales in the Netherlands dropped by 73.8%, the lowest since 2022, and Portugal saw a 33% decrease. Denmark and France experienced declines of 67.2% and 59.4%, respectively.

These figures raise concerns about whether the revamped Model Y can revive Tesla’s market presence in Europe. Although the new Model Y is available for order in most European countries, deliveries in Germany, the UK, France, and Italy are expected to begin in June. Tesla is offering car loan discounts and other financial incentives in Norway, Sweden, Germany, the UK, and France to boost demand.