Context:

Tesla's sales in Germany and the U.K. have plummeted to their lowest in over two years, despite a general rise in demand for electric vehicles across Europe. Registrations of new Teslas fell by nearly 46% in Germany and 62% in the U.K., with similar declines in other European countries, attributed partly to delays in the rollout of the latest Model Y. Analysts suggest deeper issues such as backlash from Elon Musk's political affiliations and the impact of U.S. tariffs are contributing to the decline. Meanwhile, Chinese manufacturers and European legacy brands, such as BYD and Volkswagen, are gaining market share with significant sales increases. In contrast, Norway remains an outlier with increased Tesla registrations, though many are used vehicles rather than new models, indicating a decline in market dominance there as well.

Dive Deeper:

• Tesla's sales in key European markets like Germany and the U.K. have dropped dramatically, with declines of nearly 46% and 62% respectively, indicating a marked shift away from the brand despite the overall rise in electric vehicle demand.

• The roll-out delay of Tesla's new Model Y has been noted as a potential factor in decreasing sales, yet deeper issues such as the European backlash against U.S. tariffs and Elon Musk's political stances are also seen as major influences.

• Analyst Matthias Schmidt highlights that the downturn in Tesla's European sales is not just a temporary blip but suggests more significant challenges linked to the company's leadership and external political factors.

• The U.K. has been particularly vocal against Musk, with anti-Musk sentiment fueling a pushback against Tesla, a brand that once led the electric vehicle market in Europe.

• In Norway, although there has been an increase in Tesla registrations, over half are used vehicles, suggesting a decline in the market share for new Teslas, which mirrors the broader European trend of reduced dominance.

• Chinese electric vehicle manufacturers like BYD are experiencing explosive growth in Europe, with German sales up 755% and British sales up 311%, even with high EU tariffs, demonstrating a shift in consumer preference.

• Volkswagen, a legacy European automaker, is seeing a resurgence with its electric vehicle sales more than doubling in the first quarter, as European consumers appear to be returning to traditional brands that have adapted to the new market demands.