Tesla experienced a consecutive decline in sales across key European markets in May, marking the fifth straight month of decreases in Britain, Germany, and Italy. In Germany, sales dropped by over a third, with only 1,210 units sold—down 36.2% year-over-year, despite a 44.9% rise in overall electric vehicle registrations. Similarly, in the UK, Tesla's sales fell more than 45%, even though the industry as a whole grew by 28%. These declines highlight the challenges Tesla faces amid increasing competition from both traditional automakers and Chinese EV brands, which are gaining market share through competitive pricing and new offerings.
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A significant factor behind Tesla’s May sales dip in Europe is the company's inventory strategy; Tesla in Britain reported selling off existing stock of the older Model Y while preparing for the launch of the new version from its Berlin factory. A Tesla spokesperson indicated that demand remains strong, with orders for the revamped Model Y "comfortably" coming in and expectations of increased sales when deliveries commence in June. The new Model Y aims to refresh Tesla’s aging lineup as traditional automakers and Chinese rivals accelerate their EV offerings in Europe.
Meanwhile, in Norway—a notable exception—sales of the new Model Y have already contributed positively, boosting Tesla’s market performance there. As the new Model Y starts deliveries across various European countries later this month, industry analysts anticipate a potential rebound in Tesla’s European sales figures. However, the current trend underscores the increased pressure on Tesla to innovate and compete effectively as the EV landscape rapidly evolves and rivals ramp up their offerings.
Source: reuters
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