Another day, another report of Tesla sales dropping. The automaker’s performance in Europe has not been exactly stellar lately, with February sales down 10% in Spain, 42% in Sweden, 45% in France, 48% in Norway and Denmark, 53% in Portugal, 55% in Italy, and a whopping 76% in Germany, as reported by Reuters.
Things are looking grim even outside Europe, with a 66% drop in Australia and 49% in China, where BYD reigns supreme with Xiaomi hot on its tail.
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Tesla
The loss in sales leads to speculation
Why the drop? While Tesla itself has not announced a reason this time either, the usual assumptions of stale models and Elon’s deeds are probably a safe bet. He might especially explain the high drop in Germany, as his support of far-right parties like Germany’s AfD has hurt his company’s reputation.
There could also be a less grim reason. The Tesla Model Y Juniper began deliveries just two days ago, and it wouldn’t be unheard of for customers to wait on reviews of the revised model before making a purchase. According to a report from Cox Automotive, the Model Y was the best-selling EV in the U.S. in 2024 with around 373,000 units sold. If the positive press reviews of the revised Model Y are anything to go by, and customers truly are waiting a little longer before buying one, that could happen again in 2025.
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Moose – stock.adobe.com
Tesla’s incentives might sway you from waiting
The electric automaker is still trying its hardest to move models, however, offering up some pretty attractive perks. If the polygonal Cybertruck is up your alley, you can get lifetime charging at any Supercharger as long as you own the vehicle. If the more normal Model 3 sounds better, and you apply for the still-active $7,500 federal tax credit, Tesla will give you a 0.99% loan if your credit score is up to snuff.
Final thoughts
The situation isn’t ideal for one of America’s biggest EV manufacturers, but there is no way to say for sure that it won’t look up in the near future. That said, even if the Model Y Juniper revives Tesla’s sales, pressure from Chinese EV makers will still continue in Europe and other countries where giants like BYD have made headway.
As for the US, Musk’s political involvement might have tarnished Tesla’s reputation for good. Unless he somehow redeems himself or someone else takes his place as CEO, it’s unlikely that the company will be as popular as it was in its heyday.
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