Tesla's sales in major European markets continue to weaken. Despite the launch of the updated best-selling Model Y, registrations in several countries saw a significant decline in November, highlighting the challenges faced by the American electric vehicle manufacturer in losing market share in Europe.
On December 1st, official data showed that Tesla's registrations in France fell by 58% year-on-year to 1,593 vehicles in November, dropped 59% to 1,466 vehicles in Sweden, and decreased by 49% to 534 vehicles in Denmark. In contrast, Norway's market registrations surged to 6,215 vehicles, an increase of nearly 175%.
Analysts pointed out that intensified competition in the European market—especially challenges from new entrants, coupled with the aging product line of Tesla—is eroding its market position. Market research also indicated that consumers are losing interest in the brand, perceiving it as lagging behind competitors in design, quality, and emotional appeal.
Tesla's weak performance in Europe began at the end of last year, following CEO Musk's public praise of right-wing politicians, which sparked protests in the region. Although Musk has since toned down his political rhetoric, Tesla's European business has yet to recover, indicating deeper challenges.
<h2>A Tale of Two Markets in Europe</h2>
Tesla's performance in the three Nordic countries shows a stark contrast.
Norway stands out as the only bright spot, with registrations reaching 6,215 vehicles in November, nearly three times the same period last year, setting a new annual sales record a month early. Data from the Norwegian Road Federation shows that Model Y sales in the country increased by 19% to 3,648 vehicles.
However, the situation is quite different in neighboring Sweden and Denmark. Data from the Swedish Mobility Association shows that Model Y sales fell by 67% to 426 vehicles.
The situation in the Danish market is even more severe. According to Bilstatistik.dk, Scandinavia's largest automotive database, Model Y's registrations in November plummeted by 74% to 206 vehicles.
Data from the Danish Mobility Association indicates that Model 3 registrations increased by 29% to 326 vehicles, making it the 8th best-selling model in the country.
Notably, Tesla launched an updated version of the Model Y earlier this year in an attempt to win back buyers. However, this effort has had little effect. By the end of November, only a small number of the cheaper Model Y, priced at €40,000 (approximately $46,468), had arrived in the European market and started selling in Germany.
This new product launch comes against the backdrop of Musk focusing much of his energy this year on Tesla's robotics business and seeking shareholder approval for his $1 trillion compensation plan. The delayed introduction of new models has put Tesla at a disadvantage in the fierce market competition.
The aging product line has become a core concern for analysts. In an increasingly crowded European market with new entrants continuously emerging, Tesla has failed to timely update its product lineup, leading to a decline in competitiveness.
<h2>Declining Brand Appeal</h2>
A study by data analytics and consulting firm Escalent released on Monday showed that consumer sentiment has noticeably weakened.
The study surveyed over 2,000 respondents across the five largest automotive markets in Europe, revealing that 38% of respondents believe the freshness of the Tesla brand has faded, perceiving it as lagging behind competitors in design, quality, and emotional appeal.
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Reports indicate that Tesla's troubles in Europe can be traced back to the end of last year when Musk publicly praised right-wing politicians, sparking protests across the region.
In November of this year, a Tesla dealership in southern France caught fire, and local media reported that investigators have launched a criminal investigation.
Although Musk later downplayed his political comments, Tesla's European business has not recovered, indicating that the challenges it faces extend beyond the scope of a public relations crisis

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Tesla's sales in several European countries saw a significant decline in November, with registrations dropping by 58%, 59%, and 49% in France, Sweden, and Denmark, respectively, while Norway experienced a counter-trend surge of 175%. The updated Model Y failed to reverse the downturn, and the aging product line has led to a decrease in competitiveness. Surveys show that 38% of consumers believe the Tesla brand has lost its freshness and is lagging behind competitors in design and quality

- Tesla's sales in major European markets continue to decline, with November registrations dropping significantly despite the launch of the updated Model Y.  
- In France, registrations fell by 58% to 1,593 vehicles, while Sweden and Denmark saw declines of 59% and 49%, respectively, contrasting with a 175% increase in Norway.  
- Analysts attribute this downturn to intensified competition, an aging product line, and a waning consumer interest in the brand, indicating deeper challenges beyond public relations issues.

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Tesla faces pressure in the European market: registrations in France, Sweden, and Denmark nearly halved in November, while Norway surged by 175%