Another blow to Tesla. The number of new car registrations is dropping

Luc Williams

European Automobile Manufacturers Association said on Wednesday that in April only 13,951 Tesla vehicles were registered, which means a decrease of 2.3%. compared to last year and the worst result since January 2023. Tesla also recorded a monthly decline in car deliveries from its factory in Shanghai.

Tesla's poor result on the European market is an exception in an otherwise encouraging month for battery-powered vehicles. Sales across the industry increased by 14%.

Tesla sales decline in Europe. Registration numbers dropped to lowest level since January 2023 2023 / Bloomberg

Musk expected a recovery in the second quarter

At the end of April, Musk told investors that after several problems that affected production in the first quarter, the company expected a recovery in the following months. “We think the second quarter will be much better,” Musk said during Tesla's first-quarter earnings call.

In Musk's opinion Transport disruptions in the Red Sea contributed to weaker sales in the first quarter of 2024 and power line fire near the German SUV car factory.

The actions of governments in some countries also had an impact on the decline in demand. In recent months, countries such as Germany and Sweden, stopped or withdrew subsidies for electric vehicles, which hampered sales growth in Europe. At the same time, producers, incl Volkswagen and Mercedes-Benz, they rethought their production plans. Volkswagen it prepared more plug-in hybrids, and Mercedes kept production of internal combustion cars until the 2030s.

Tesla is losing ground in the largest markets

Withdrawal of incentives in Germany, the largest car market in Europe, this is a problem for most brands. However, the data shows that Tesla loses the most. Last month, Elon Musk's electric car maker underperformed its competitors. Overall EV registrations remained essentially unchanged, while Tesla sales dropped by 32%.

A clear decline in interest in Tesla models was also visible on the British market. In the UK, Tesla registrations fell by 25% in April and by 14% in the first four months of the year.


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