Tesla Posts Sharp Drop in EU Sales

(MENAFN) Tesla’s electric vehicle sales in the European Union plunged sharply by 36.6% year-on-year in August, according to new data published Thursday by the European Automobile Manufacturers’ Association (ACEA). The US-based automaker led by billionaire Elon Musk moved just 8,220 units in August, down from 12,966 in the same month of 2024.

The company’s market share in the EU shrank to 1.2% in August, dropping significantly from 2% last year. When expanded to include the EU, European Free Trade Association, and the UK, Tesla’s sales fell 22.5% year-on-year, totaling 14,831 vehicles during the period.

While Tesla’s numbers declined, overall battery electric vehicle (BEV) sales in the EU surged by 30.2% to 120,797 units in August, underscoring the growing demand for electric cars across the region.

Chinese automakers, meanwhile, experienced explosive growth, doubling their market share to 5.5% and boosting sales by 121% year-on-year to 43,529 units, as reported by JATO Dynamics. Chinese brands notably outsold established European manufacturers Audi and Renault in August.

“European consumers are responding positively to the growing, competitive line-up from China’s car brands,” said Felipe Munoz, Global Analyst at JATO Dynamics. “It appears that these brands have successfully tackled the perception and awareness issues they have experienced.”

Tesla’s steep sales decline in Europe has been attributed to a combination of Elon Musk’s controversial political positions and involvement in European politics, alongside intensifying competition from rapidly advancing Chinese EV makers.

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