By John Q. Hosedrinker 
Tesla’s European sales experienced a fifth consecutive monthly decline in May, plummeting 28% across 30 countries despite overall electric vehicle market expansion. This poor performance contradicts CEO Elon Musk’s prediction of a “major rebound” following factory retooling, and investors are now anticipating a sales boost from a planned cheaper model later in the year. The sales slump has been particularly notable in Germany, where Musk’s public support for a far-right party has likely impacted sales, and SAIC Motor surpassed Tesla in European sales. Tesla’s recent struggles coincide with the launch of its robotaxi service in Austin, Texas, which is under scrutiny following videos of safety issues.
Read the original article here
Europeans still aren’t buying Teslas, and the trend points downward, marking a fifth consecutive month of declining sales across the continent. It’s a stark reality, and one that seems to be solidifying rather than showing signs of abating. The reasons for this downturn are complex, but a few key themes consistently emerge.
The most prominent factor, repeatedly echoed in the observations, revolves around the persona of Elon Musk. His actions, particularly his public displays and associations, have deeply impacted the brand’s reputation in Europe. The strong sentiment expressed here underscores the significant weight Europeans place on values and principles. Many feel strongly that associating with a company led by someone who is perceived to hold views that are antithetical to European values is a deal-breaker, plain and simple.
Beyond the ethical concerns, another major issue is the perceived quality of the cars themselves. Complaints regarding build quality, reliability, and overall value are frequent. In a market saturated with established European automakers and increasingly competitive Chinese brands offering feature-rich vehicles at competitive prices, Tesla faces stiff competition. This perception is not helped by what many perceive as outdated technology and design compared to newer models available in the EV market. Simply put, people are finding better options.
The availability of alternatives is a critical component. The European market boasts a wide array of electric vehicle models from established brands, each with their own style and appeal. This abundance of choice gives consumers the power to be highly selective and the ability to avoid a brand they might find morally or practically questionable. Furthermore, the emergence of Chinese car manufacturers in the European market has added another layer of competition.
The situation extends beyond just individual consumers. The initial success of Tesla in Europe was partly fueled by early adopters and those drawn to the promise of a greener future. However, the brand’s appeal has diminished. This has led to the emergence of competitors with better build quality.
Even more interesting is the sentiment around Tesla’s stock price. There’s a feeling that the company’s valuation is disconnected from reality. Many believe that the stock price has been held up primarily by the hype surrounding Musk’s name rather than the fundamentals of the company itself. The consistent decline in sales further fuels this scepticism, as it contradicts the stock’s seemingly impervious climb.
This whole situation is very ironic, seeing as one of the main selling points of Tesla for its early adopters was the fact that they had an electric powertrain and thus were green and environmentally friendly. It’s a reminder that while technology is important, it’s no match for bad PR. The company’s reputation is seemingly tarnished beyond repair in the eyes of many European consumers.
The discussion about the lack of special advantages is also poignant. Tesla no longer has the exclusivity it once enjoyed. This makes it just another contender in a fiercely competitive marketplace, where consumers demand a compelling product and a brand that aligns with their values. The future looks challenging for Tesla in Europe.
In conclusion, the sales drop, the public perception, and the increasing competition all paint a difficult picture for Tesla’s future in Europe. What started as a promising brand that was fighting climate change has turned into something many people in Europe want nothing to do with. It would be fair to say Tesla has a problem.