Tesla Sales Crisis in Europe and China
Tesla is experiencing a persistent sales crisis that is spreading across both Europe and China. This development has significant implications for the company and its investors.
Europe
In its core European markets, Tesla’s sales figures saw a significant drop in April 2025, despite the introduction of a revamped Model Y. In the UK, new registrations fell by 62% compared to the previous year, while the overall market for battery electric vehicles in the UK grew by 6.9%. In contrast, Volkswagen and BYD were able to considerably increase their sales in the UK, indicating a shift in demand.
Some investors hope that the transition to a new generation of the Model Y, produced at the German Gigafactory, might improve sales figures in the future. However, the new model will not be delivered in many markets until June, which could lead to temporary reluctance in purchases.
China
In China, Tesla deliveries have decreased for the seventh consecutive time. This continuous decline in sales figures in one of the largest automotive markets in the world is concerning for the company.
Impact on Perception and Stock Price
The ongoing sales crisis could have significant effects on Tesla’s perception. Investors and observers are discussing whether technical or logistical reasons are solely responsible for the decline or if Elon Musk’s political engagement also plays a role. The stock price could continue to come under pressure as the market dynamics in Europe and China are influenced, not least by competition from other electric vehicle manufacturers.
Conclusion
Tesla’s sales crisis in Europe and China presents a significant challenge for the company. While the market for electric vehicles is growing overall, Tesla is losing market share and trust. Future developments depend on the successful launch of new models and addressing current challenges.