Tesla, the leading electric vehicle manufacturer, is facing tough times. Its sales have dropped significantly. According to current reports, in May, Tesla's sales in the European Union plummeted by 34.2% due to a sharp decline in demand for new battery-powered cars.
Experts have observed a substantial decrease in demand for electric vehicles in Europe over the past few months. This was an unpleasant surprise for the company, as the region had been experiencing active growth for several years. At the same time, competition to release more affordable models has intensified.
Previously, the European Commission, aiming to protect domestic car manufacturers from an influx of cheap imports, announced the introduction of preliminary duties of up to 38.1% on electric cars made in China. This measure will take effect in July. In response, Tesla's management announced a potential price increase for their Chinese-made Model 3 once the EU measures come into force.
According to estimates by the European Automobile Manufacturers' Association, the total volume of electric car sales in the European Union fell by 12% in May compared to last year. This could be explained by a 30% tumble in electric vehicle sales in Germany. This happened after subsidies for electric car purchases ended in late 2023.