FRANKFURT, Germany — Electric vehicle sales in Europe saw mixed results in the first two months of the year, with overall EV sales increasing while Tesla experienced a significant decline. The European Automobile Manufacturers’ Association reported a 49% drop in Tesla sales compared to the same period last year. The decline has prompted concerns over an aging Tesla vehicle lineup and criticisms of CEO Elon Musk’s political affiliations, particularly his backing of Germany’s far-right Alternative for Germany party. Many in Europe have condemned Musk’s political stance, leading to protests against Tesla dealerships in the region.
Despite Tesla’s struggles in the European market, competition in the EV sector is intensifying as major automakers, including China’s BYD, ramp up their production. BYD recently reported a record 777.1 billion yuan in revenue for 2024, attributing the success to a 40% jump in sales of its electric and hybrid vehicles. Moreover, the company unveiled a new ultra-fast EV charging system, signaling its commitment to innovation and sustainability.
In contrast to Tesla’s sales decline, all battery-electric car sales in Europe saw a 28.4% increase during the same period. While Tesla faces challenges globally, the company’s new Cybertruck has faced multiple recalls, with the most recent one involving panels detaching while driving. This marks the eighth recall for the Cybertruck since its launch over a year ago, raising concerns about quality control and safety standards.
As Tesla grapples with declining sales and quality control issues, the EV market continues to evolve, presenting both challenges and opportunities for automakers. Musk’s controversial political views and actions have also placed a spotlight on the intersection of business and politics in the automotive industry. Moving forward, it remains to be seen how Tesla will navigate these challenges and whether the company can regain its foothold in the competitive European EV market.