Tesla's sales continued to decline in major European electric vehicle markets in April, despite the company launching an updated version of its most popular vehicle. The company registered only 512 new vehicles sold last month in the UK, according to the Society of Motor Manufacturers and Traders on Tuesday, representing a 62 percent decrease compared to the previous year. The UK was a rare exception for Tesla in the first quarter, as the company reported a 6 percent increase in registrations.
Tesla's decline was even more pronounced in Denmark, the Netherlands, and Sweden, where sales dropped by at least two-thirds in each country. Tesla suffered significant declines in eight of the 10 largest electric vehicle markets in Europe, even as it began delivering the redesigned Model Y to its customers. The change in production lines at assembly plants worldwide, including in Germany, cost the company several weeks of production early this year and contributed to the worst quarterly sales for the company since 2022.
"Following the abrupt drop in April, Tesla's sales have decreased by 1 percent in the first four months of the year," stated the Society of Motor Manufacturers and Traders. In Germany, by far the largest electric vehicle market among EU member states, Tesla's sales fell by 46 percent, despite total electric vehicle registrations increasing by 53 percent last month.
While the Model Y topped the sales charts in Norway last month, the country's road federation indicated in its monthly statement that Tesla's total sales "are nowhere near the level we are used to." "This could be a sign that many people now find other brands equally interesting and have much to offer in about the same price segment," commented Oyvind Solberg Thorsen, director of the Norwegian Road Federation.
The drop in sales suggests that CEO Elon Musk's eccentricities and his work for U.S. President Donald Trump are affecting Tesla's sales, despite the company improving its product line. Tesla's stock has fallen 42 percent from its all-time high reached in mid-December. Despite its efforts to grow, Tesla lagged far behind the 43 percent increase in battery electric vehicle sales across the sector.
The CEO has been one of the top advisors to an administration that is waging a global trade war and rethinking the role of the United States in alliances like NATO. Tesla's shares fell by up to 2 percent before the stock market opened.
