Tesla’s vehicle registrations in Europe declined sharply in the first quarter, continuing a broader global slowdown due to the Model Y refresh but also the brand damage caused by CEO Elon Musk’s involvement in both European and U.S. politics since late last year.
According to figures released Thursday by the European Automobile Manufacturers’ Association (ACEA), the US electric vehicle maker sold 54,020 cars across the region in the first three months of the year. That marked a 37.2% drop from the 86,027 vehicles registered a year earlier.
In March, Tesla recorded 28,502 vehicle sales in Europe, down 28.2% from 39,684 in the same month last year.
The slump comes as Tesla stopped producing its old Model Y — the world’s best selling car — to shift production toward a refreshed version across four Gigafactories. Additionally, the company has been facing increased competition in Europe from domestic, Chinese and Korean brands with the launch of more affordable EV models.
Tesla shares jumped earlier this week after CEO Elon Musk announced he is relocating his time towards Tesla starting from May, while stepping back from the U.S. Department of Government Efficiency — a key distraction from his Tesla mission, according to several Wall Street analysts.
EV Sales in EU
Battery electric vehicles accounted for 15.2% of total new car sales in the European Union in the first quarter. Hybrid electric vehicles captured 35.5% of the market, while plug-in hybrids made up 7.6%.
BEV sales in the EU grew 23.9% year over year in the first quarter, reaching 412,997 units. In March alone, BEV sales rose 17%, hybrid models increased 23% and plug-in hybrids gained 14%.
In France, Tesla registrations fell 41.1% to 6,693 vehicles. In March, Tesla sold 3,157 units in the country, down from 4,998 a year earlier.
In Germany, Tesla’s registrations dropped 62% in the first quarter to 4,935 units. March figures were down 42.5% at 2,229 vehicles
In the Netherlands, Tesla sold 3,443 vehicles in the first quarter, a 49.7 percent decline. In March, sales totaled 1,536 units, down from 3,060 last year
As of the time of writing, Tesla shares are trading 1.4% lower during Thursday’s pre-market session. The stock is down 38% year to date.
