Why Tesla's sales collapse is mostly their own "fault"

The company has lost 13.7% since the start of the year, dragging down the entire market for zero-emission vehicles, which is nevertheless growing rapidly.

By: Francesco Barontini

Dec 22, 2024 at 2:43am ET

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Tesla has a problem in Europe. In fact, you could say that Europe has a problem with Tesla. In any case, the latest registration figures show that the market for electric cars on the Old Continent is down on last year.

But on closer inspection, this decline is mainly attributable to lower volumes recorded by the company headed by Elon Musk.

Tesla tips the balance

In November alone, Tesla delivered 26,200 vehicles in Europe (including EFTA countries and the UK). In the same month of 2023, it delivered 10,000 more. That's a fall of 28.4%, but it gets worse. Since the start of the year, the American brand has sold 282,700 cars in our part of the world. Last year, Tesla reached 327,600.

That's a fall of 13.7%. The situation could have been even worse if Tesla had not lowered its prices and increased production of the Model Y at its Berlin factory. But why is Tesla a problem for Europe?

Tesla Model Y Juniper : rendered by SugarDesign

Photo : Car News China

Indeed, the overall sales figures for electric cars on the Old Continent show a contraction of 1.4%, but if Tesla is taken out of the equation, the figures are up by 1.3%. In short, the other manufacturers generally sold more than last year, but Tesla's contraction 'hides' this trend.

Growth of the electric car market in Europe including Tesla : -1.4% (January-November 2024)
Growth in the European electric car market without Tesla: +1.3% (January-November 2024)

Tesla Robovan et Cybercab

Photo : InsideEVs

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Model Y loses best-seller title

Tesla is therefore beginning to come under attack from increasingly fierce competition. How will it catch up? It's hard to say. Perhaps with the arrival of the two new affordable models expected in 2025, things will change. But will they really arrive? Furthermore, are they a priority for the company? Elon Musk seems to want to make the difference on autonomous driving and artificial intelligence more than on the number of cars sold. Is this the right way forward?

While we wait for the answers to all these questions, one thing is certain: the Tesla Model Y will not be the best-selling car in Europe. In 2024, the leader in terms of units registered will be the Dacia Sandero, which finished an honourable second in 2023 and whose lead now seems insurmountable for everyone else. The restyling of the electric SUV could, however, reverse the trend.