Tesla’s sales in Germany dropped a shocking 76% in February, which is even worse than a 60% drop in January, according to Germany’s road traffic agency. This is a big worry for Tesla, especially since Germany is one of its most important markets. Meanwhile, sales of all electric vehicles in Germany actually went up by 30.8%.
Troubles Across Europe
It seems that Tesla is struggling not just in Germany, but also across Europe. Sales in France fell by 26%, and in countries like Norway, Denmark, and Sweden, the drop was between 42% and almost 50%. However, in the UK, Tesla managed to increase its sales by 20%, but its overall market share still went down because other brands are getting stronger.
Political Drama and Its Effects
Reports suggest that Elon Musk’s political views might be affecting Tesla’s sales. He has publicly supported far-right political groups, especially in Germany, which may have upset some potential buyers. His comments asking Germans to forget about historical guilt didn’t help either. This led to boycotts, with some people in London urging Tesla owners to switch car brands, and protests happening in places like Strasbourg and even in France, where some Tesla cars were damaged.
Challenges Beyond Europe
Tesla’s trouble isn’t just in Europe. In China, the biggest electric vehicle market, production fell by nearly 50% in February due to tough competition from local companies like BYD and Xiaomi. While Musk’s political actions may not be a factor in China, the competition there is getting fiercer.
In the U.S., investors are also worried. Tesla’s stock has dropped over 40% since December, losing gains from before. Some investors want more accountability from Musk, especially asking for his pay to be connected with environmental and governance goals.
Looking Ahead
A part of the sales drop might be because buyers are waiting for a new Model Y, but experts believe the company’s political troubles and growing competition are big reasons behind the decline. However, Musk is still focused on Tesla’s future, especially in self-driving technology and plans for autonomous taxis.
People are eagerly waiting for upcoming financial reports to see how Tesla will handle these challenges worldwide.
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