Tesla’s sales in France and Sweden continued to decline in March, marking the third straight month of losses for the electric car giant on a year-on-year (YoY) basis. This downturn has resulted in the lowest first-quarter sales figures in both countries since 2021, according to official data released on Tuesday.
The company, led by billionaire CEO Elon Musk, is facing increased difficulties in Europe, with sales slumping ahead of the highly anticipated launch of its new Model Y mid-size SUV.
Musk’s political associations, particularly his support for far-right parties, have also sparked controversy and could be influencing consumer sentiment towards the brand, reported Reuters.
Market Share Decline and Rising Competition
Tesla recorded 3,157 vehicle registrations in France in March, a 36.83 per cent drop from the same month last year. In Sweden, sales plummeted 63.9 per cent to just 911 units in the month under review. For the entire quarter, Tesla sold 6,693 cars in France and 1,929 in Sweden, reflecting a significant year-on-year decline.
The brand’s market share in France contracted to 1.63 per cent in the quarter ending March, as competition from Chinese electric vehicle manufacturers, including BYD, intensified.
The combined market share of the Chinese EV makers in France climbed to 3.19 per cent, surpassing Tesla’s growth trajectory in the region.
Tesla’s struggles come amid an increasingly competitive EV landscape, where traditional automakers and emerging players are launching newer and often more affordable electric models.
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Additionally, the backlash surrounding Musk’s political affiliations, particularly his endorsement of Germany’s far-right AfD party, appears to be affecting the brand’s European performance.
Elaborating on the steps ahead for the company, Eric Schiffer, chief executive of private equity firm the Patriarch Organisation in Los Angeles, said, “In the United States, the strategy would be to leverage, would be to tie to patriotism and shift to the right.”
“The European strategy is going to be more challenged and will need to be more about the value and competitive differences with the market there,” he explained.
Amid mounting criticism, Tesla vehicles have become targets for vandalism in multiple countries, while “Tesla Takedown” protests are being planned across Europe and the US.
The situation escalated on Monday when a fire broke out at a Tesla dealership in Rome, destroying 17 cars. Musk described the incident as an act of terrorism, echoing similar remarks previously made by US President Donald Trump.
