Tesla sales are tumbling in Europe, and that may spell trouble for drivers — especially those hoping for affordable, accessible electric vehicles.
What's happening?
New Tesla registrations dropped sharply across much of Europe in July — falling by 55% in Germany and nearly 60% in the United Kingdom. Sales also plunged in Sweden and the Netherlands, with the company experiencing significant drops in France, Belgium, Italy, and Portugal.
According to Reuters, CEO Elon Musk pointed to strict automated driving regulations as one reason for the slump, saying the company can't yet offer the same features there as it does in the United States. But the situation appears to be more complex. Rising competition from other EV makers, high prices, and public backlash tied to Musk's personal views have all contributed to waning consumer interest.
Tesla is developing a new, more affordable model but won't increase production until next quarter — later than planned. That leaves customers with few budget-friendly options.
Why is this sales slump concerning?
Sluggish sales could ripple beyond the company's balance sheet. With fewer cars hitting the road, fewer drivers may end up trading in their gas-powered cars — a shift that's key to speeding the move toward cleaner transportation.
This isn't Tesla's first stumble with customer expectations. Just months ago, it revealed that the Cybertruck likely won't ever be sold in Europe — not because of demand but due to safety and design rules. Officials highlighted that the truck's sharp stainless steel edges, combined with its heft, don't meet EU standards for protrusions or weight limits.
What's being done about it?
Other carmakers are stepping up with more electric options, giving buyers plenty to choose from. Hyundai, Kia, and Ford all have models that are gaining ground. In the meantime, some governments are sweetening the deal with tax breaks or rebates, and charging networks are expanding to make EV ownership easier.
Musk told analysts he expects sales in Europe to improve "once we are able to give customers the same experience that they have in the U.S.," pointing to stricter automated driving rules overseas that limit what the cars can do.
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