Tesla's Market Share In Europe Crumbles As EV Rivals Surge

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(RTTNews) - Tesla's sales in Europe plunged 49 percent in April, even as electric vehicle demand across the continent surged to record highs underscoring the mounting pressure the automaker faces amid intensifying competition and reputational challenges.

Despite CEO Elon Musk's claim at the Qatar Economic Forum that Europe is a weak market for all automakers, data paints a different picture. According to the European Automobile Manufacturers' Association, fully electric vehicle registrations hit a record 184,700 units in April up 28 percent from the previous year. Cumulative EV sales through April exceeded 758,000, also an all-time high.

Tesla, however, is losing ground. April sales fell to just 7,261 vehicles across 31 European markets, dragging its market share down to 4% from nearly 10 percent a year ago. Year-to-date, Tesla's European sales are down 39 percent. For the first time, Chinese automaker BYD outsold Tesla in Europe with its fully electric models, excluding hybrids.

Analysts point to a range of issues; a delayed refresh of the Model Y, an ageing product lineup with no new mass-market models announced, and growing consumer interest in hybrid vehicles, which now account for over 35 percent of Europe's car market. Tesla, notably, does not offer hybrids.

Musk's political activities including his ties to Donald Trump and time spent advising the U.S. government to have also sparked protests at Tesla dealerships, further eroding brand sentiment.

While Europe's EV market accelerates, Tesla's shrinking footprint signals a critical turning point. As traditional automakers and aggressive Chinese brands gain traction, the company's dominance in the region is no longer assured.