Quick overview

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Tesla is losing a lot of market share in major European EV markets, where sales are still declining despite the region’s high overall demand for EVs.  The Federal Motor Transport Authority of Germany announced on Wednesday that Tesla’s new car registrations in Germany decreased by 39 percent last month, with a 56 percent decline overall for the first eight months of the year.

 

Tesla’s sales in France, Belgium, Denmark, and Sweden all posted sharp falls for last month. The Norwegian market is the lone bright spot for Tesla amid the continent’s general decline. With a 21 percent increase last month, Tesla’s registrations in Norway defied the trend, and the total growth this year has now reached 26 percent. Growth in a single market, however, is insufficient to address Tesla’s global challenges. Global Tesla vehicle deliveries decreased by 13% in the first half of this year.

However, Tesla’s global problems cannot be solved by growth in a single market. Tesla’s worldwide car deliveries dropped 13% in the first half of this year, setting the company up for a second straight year of declines.

Tesla may benefit from accelerating purchases by US consumers before the federal tax credit expires this quarter, potential upside may be constrained by continued weakness in the European and Chinese markets.

The data from Germany, the biggest car market in Europe, is especially startling. Tesla’s sales performance has drastically declined, despite the electric vehicle market being in expansion.