Tesla's European nosedive is worsening despite a production uptick.
What's happening?
The company blamed poor first-quarter results on the unavailable new Model Y, Electrek reported, but now that the SUV is ready, Tesla will have to look for another scapegoat.
That's because its second-quarter sales in the top five European markets are down about 50% year-over-year — and are lower than they were in the first quarter.
The Model Y is Tesla's top seller, but deliveries were down in Q1. Production at Gigafactory Berlin returned to normal in April, but it did not boost sales.
The drop was particularly stark in Denmark, France, and Portugal, whose year-over-year April sales plunged 67%, 59%, and 47%, respectively.
Why is this concerning?
This is concerning for the company because it comes amid an uptick in battery electric vehicle sales. In Europe, that climb reached 24% in Q1, while Tesla was down 37%.
"This is rapidly looking like a demand collapse for Tesla amid a surge in BEV sales from competitors in Europe," Electrek stated, calling it "a massive red flag."
The company has also pivoted from its role as the industry leader, with CEO Elon Musk touting Tesla's development of autonomous taxis and robots, the former of which will be rolling out in June.
EVs save drivers money because they don't require expensive gasoline or routine maintenance, and they produce zero tailpipe pollution, which helps slow the rapid warming of the planet.
Whether you buy new or used, U.S. consumers can find a model that will score a $7,500 or $4,000 tax credit. States and dealers have their own incentives, too, making the technology more affordable than gas-powered vehicles.
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One commenter offered insight into the issue, writing: "Got a text offering me $2k off a new Model Y. There is no way I will consider that until Elon is fired. They (the board) need to show they don't tolerate that behavior and that they are serious about dealing with it. He should not be given a chance to resign."
The CEO has been lampooned in the United States for his involvement in government spending cuts, but his Q Rating may be even lower in Europe. His support of the far-right Alternative for Germany political party has resulted in significant backlash and consequences similar to the vandalism of Tesla stores, chargers, and vehicles in America.
Someone else took this opinion a step further, noting they would need Musk to divest from the company to buy a Tesla. Others offered that the downfall was related to the CEO's relationship with U.S. President Donald Trump and the decision to focus on robotaxis and robotics.
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