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Musk, Elon

Tesla Sales Plummet in Europe Amid Backlash Against Elon Musk

Strategic Insights

— 1 min read

European consumers are turning away from Tesla, with the company's sales plummeting in Germany and other countries following a series of controversies involving Elon Musk. The drama in Europe comes as Chinese carmakers are making inroads into the industry, with BYD and Polestar experiencing significant sales growth. While Musk's company has seen declines in several countries, including France, Sweden, Denmark, and Italy, it has reported gains in Norway, Spain, and Portugal.

Key Takeaways:

  • Tesla sales fell 60% in June in Germany compared to the same month last year, with a 58% decline over the six months to the end of June.
  • German road traffic agency KBA reported the dramatic shift in sales, which contrasts with the flat or slightly down sales of Germany's automotive giants, including Audi, Volkswagen, and Mercedes-Benz.
  • Chinese carmakers BYD and Polestar experienced significant sales growth, with January-to-June sales up 426% and 21%, respectively.
  • Tesla sales also fell for a sixth consecutive month in France, Sweden, Denmark, and Italy, underlining the challenges facing the company.
  • Musk has sparked controversy with his support for conservative causes, including the AfD party in Germany, and his blaming of Prime Minister Sir Keir Starmer for a scandal over grooming gangs.
  • A YouGov poll found that 44% of respondents in France agreed "absolutely" with the idea of boycotting Tesla, with an average 58% support for the boycott across eight countries.
  • The German Association of the Automotive Industry pointed to the broader growth in electric vehicles, but noted that German manufacturers are strong in their home market.

Statistics:

  • Tesla sales fell 60% in June in Germany compared to the same month last year.
  • German road traffic agency KBA reported a 58% decline in Tesla sales over six months.
  • BYD sales rose 426% in January-to-June.
  • Polestar sales increased 21% in January-to-June.
  • Tesla shares closed at $US312.72 on Thursday, down from a high of $US479.86 in December.
  • The average support for boycotting Tesla across eight countries was 58%.
  • 44% of respondents in France agreed "absolutely" with the idea of boycotting Tesla.
  • The German market share for electric vehicles made by German manufacturers is around one in two in Europe.

Sources:

  • YouGov poll
  • Cluster 17 in partnership with le Grand Continent
  • Reuters
  • German road traffic agency KBA
  • Electric Vehicle Association of England
  • German Association of the Automotive Industry
  • Elon Musk's Twitter account
  • US Congress
  • Tesla's quarterly results

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