The fall of Elon Musk continues: Tesla’s sales in Europe collapse while their Chinese and traditional competitors gain ground | News from Mexico

France.-Tesla sales in Europe have experienced an important fall during the month of April, reaching their lowest levels in two and a half years. This decline coincides with an increase in the purchases of electric vehicles (VE) of Chinese brands and a growing controversy about the political opinions of the CEO of Tesla, Elon Musk. The company faces increasingly fierce competition of traditional manufacturers and new Chinese competitors that offer more affordable electric vehicles, reports Reuters.

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Performance in Europe

According to recent data, Tesla sales in Europe have decreased for four consecutive months. In April, automotive sales in several European countries fell dramatically:

• Sweden: Tesla sales in April fell 80.7%, reaching their lower levels since October 2022.
• Netherlands: The fall was 73.8%, the lowest level for that month since 2022.
• Portugal: Registered a 33%decrease, greater than the previous month.
• Denmark: Sales decreased 67.2%.
• France: He experienced a 59.4%collapse.

These numbers contrast with the general increase of 28% in sales of all electric vehicles in Europe during the first quarter, which suggests that Tesla is losing land compared to other manufacturers.

Factor analysis

1. Fierce competition:
   1. Tesla faces an increasing competition of traditional manufacturers that are investing in electrical technology, as well as new Chinese brands that launch more affordable electric vehicles.
   2. According to Andy Leyland, co -founder of SC Ines, “Tesla’s technological leadership has been largely eroded with the current range of models.” This has had a negative impact on sales.
2. Impact of the current range of models:
   1. The introduction of the renewed Moder and could be key to reliving Tesla’s fortunes in Europe. However, consumers have not yet received these vehicles, and estimated deliveries begin in June in some countries.
   2. Time will be crucial to determine if this updated model manages to recover the confidence of buyers.
3. Political controversies and protests :
   1. Elon Musk’s participation in the government Efficiency Department (Doge), created by US President Donald Trump, has generated criticism and protests.
   2. Some clients have expressed their dissatisfaction with the political opinions of Musk and have promised to boycott the brand or even participate in protests, in some cases causing criminal damage to concessionaires.

Tesla and Elon Musk change?

Tesla has flatly denied reports that suggest that the company is looking for a successor for Elon Musk as CEO. In a statement, the president of the Board of Directors of Tesla, Robyn Denholm, said that “the complaint is absolutely false” and that the Tesla CEO remains Elon Musk, which the Board has full confidence.

Musk has also publicly defended his dedication to Tesla, ensuring that “he will be dedicating much longer to the company” and promising to significantly reduce his role in government. In spite of this, the controversy persists, and some analysts attribute the financial difficulties of Tesla in part to the reputation and multitasking of Musk, says the BBC.

The decline in Tesla sales in Europe reflects a combination of factors, including growing competition, lack of innovation in its product range and controversies related to the political opinions of Elon Musk. While the introduction of the new Model and could be a step towards recovery, Tesla’s future in the European market is still uncertain. The company will have to address these challenges to maintain its dominant position in the electric vehicle sector.