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Tesla’s European Sales Drop by 36% in August Amid Broader EV Market Decline

Tesla’s European Sales Drop by 36% in August Amid Broader EV Market Decline
  • PublishedSeptember 20, 2024

The European electric vehicle (EV) market is facing significant challenges, with sales of new Tesla cars in the region falling sharply in August by 36%, matching the overall decline in EV demand across Europe.

This drop, reported by the European Automobile Manufacturers’ Association (ACEA), signals broader concerns for the electric vehicle industry, with automakers warning of a “continual downward trajectory” in EV sales.

Tesla’s sales in Europe, which had been steadily declining throughout much of 2024, reached a low point last month, with only 21,701 new vehicles registered. Despite the slump, industry experts say the situation could have been worse, noting that Tesla’s decline aligned with the broader EV market, providing some relief after months of underperformance.

Across Europe, the EV market shrank by 36% in August, marking the continuation of a worrying trend. Even in major markets like Germany and France, the demand for battery-powered electric vehicles saw dramatic drops. Germany, Europe’s largest EV market, experienced a 69% decrease in electric vehicle sales, while France saw a 33% fall.

The ACEA has called the recent sales downturn “extremely worrying” and has urged the European Union to reassess its strict vehicle emissions targets, warning that the current market conditions could put manufacturers at risk of substantial fines.

While Tesla has struggled in Europe, the company’s performance in China remains more positive, with sales on track for a record third quarter. However, this success is partly driven by attractive financing rates that have cut into the company’s profit margins.

Analysts attribute the European EV sales slump to several factors, including economic uncertainty, high EV prices, and the lack of sufficient charging infrastructure. As government incentives for electric vehicles have been rolled back, especially in Germany, the cost competitiveness of EVs has worsened, contributing to the decline in demand.

The broader automotive industry in Europe is also feeling the effects, with manufacturers like Volkswagen and BMW facing potential factory closures and layoffs. Automakers have been lobbying for the EU to take urgent action, with the ACEA highlighting the need for better charging infrastructure, tax incentives, and a stable supply of key raw materials to support the shift to electric vehicles.

With input from Fortune, Bloomberg, and the Telegraph.

Written By
Joe Yans