Tesla’s (TSLA, Financials) sales in Europe and the United Kingdom declined by 45.2% year-over-year in January, with new vehicle registrations dropping to 9,945 units, according to data from the European Automobile Manufacturers’ Association.
With the wider European automotive industry seeing a 2.1% drop in new vehicle registrations, the company’s market share in the area dropped from 1.8% a year before. Germany, Italy, and France most clearly showed the slowdown.
With their market share climbing to 15% from 10.9% a year before, battery electric car sales throughout Europe surged 34% to 124, 341 units despite Tesla’s fall. Among manufacturers, Volkswagen (VWAGY, Financials) recorded a 14.9% rise in sales; Toyota’s (TM, Financials) Lexus and Renault (RNSDF, Financials) also showed gain.
With a 37% rise in sales and a 2.3% market share, Chinese manufacturer SAIC Motor exceeded Tesla in the area. The numbers underline the growing rivalry between Chinese electric car producers as well as European manufacturers.
The decline in sales of Tesla correspond with the first-ever yearly dip in deliveries in 2024. Industry observers have highlighted as possible influences on Tesla’s performance a continuing pricing battle with Chinese rivals, changing customer preferences toward hybrid cars, and questions about brand image connected with CEO Elon Musk.
This article first appeared on GuruFocus.
