Tesla’s new cars records in several major European markets have fallen in July, despite the reformulation of its main model, Model Y, as the electric vehicle automaker faces a negative reaction to the political opinions of the ELON Musk president, regulatory challenges and increased competition.
Tesla’s aged line of aged vehicles is facing a wave of low -cost competitors, especially from China.
The company is launching a reformulated version of Model Y and starting the production of a new cheaper model, but the production of this model will only increase next quarter, later than the initially expected.
Brand records – an indicator of sales – fell 86% in July in the annual comparison in Sweden to 163 cars; 52% in Denmark for 336 cars; 27% in France, to 1,307; 62% in the Netherlands for 443; and 58% in Belgium for 460 vehicles, according to official sector data, marking the seventh monthly drop followed in all these countries.
They also fell 5% in Italy to 457 cars and 49% in Portugal to 284 vehicles.
Tesla sales in Europe fell more than one third in the first six months of the year.
Norway and Spain were exceptions to the trend, with Tesla records in July rising 83% and 27% to 838 and 702 cars, respectively.
Without new more affordable entry vehicles until the last three months of the year and with the imminent end of a US $ 7,500 tax allowance for electric vehicle buyers, Musk acknowledged in July that Tesla may have “some difficult quarters.”
He stated that the strict regulations on automated driving in Europe have made it difficult to sell Model Y in some countries, as the vehicle’s optional supervised steering system is “a major sales argument.”
“Our sales in Europe, we believe they will improve significantly as soon as we can offer customers the same experience they have in the United States,” Musk told analysts.
Model Y records in Sweden and Denmark fell 88% and 49%, respectively, in July, while in Norway they quadrupled, reaching 715 cars.
Car sales generally rose 20% in Denmark, 6% in Sweden, 48% in Norway, 17% in Spain, 9% in the Netherlands and 21% in Portugal, while fell 8% in France, 5% in Italy and 2% in Belgium in July, according to sector data.
Germany and the United Kingdom are expected to disclose July car sales data next week.
European automakers Volkswagen, Mercedes-Benz, Stellantis, Renault and BMW published weak results in the second quarter, warning of pressure caused by US import tariffs and drop in demand.
