New Model Y boosts Norway deliveries but fails to stem Tesla's European sales rout
TESLA'S car sales fell sharply in several European markets, including Sweden and Portugal, last month, a fifth consecutive monthly decline that has been blamed on chief executive officer (CEO) Elon Musk's political activities and an outdated model lineup.
However, Norway, where Tesla has started delivering revamped versions of its midsize sport utility vehicle (SUV) Model Y, provided a lone bright spot for the company as it prepares to roll out the refreshed vehicle in more European markets from this month.
Tesla has not launched a new mainstream model since 2020, while traditional carmakers are rushing to produce more affordable electric vehicles (EVs) and Chinese rivals like BYD have entered the European marketplace.
In Sweden, Tesla's new car sales plunged 53.7 per cent last month from a year earlier, and in Portugal they were down 68 per cent.
However, overall EV sales in both markets rose by almost a quarter last month.
Tesla's sales were also down 30.5 per cent in Denmark, 36 per cent in the Netherlands and 19 per cent in Spain, while data from PFA in France released on Sunday showed a 67 per cent fall.
In Norway, sales jumped 213 per cent last month, data from the Norwegian Road Federation showed, with purchases of Model Ys — both the new and old versions — rising to 2,346 units from 690.
"Tesla's strong performance in Norway points to the way forward for the company: innovate," said Ben Nelmes, founder of EV data analysis firm New AutoMotive. "No car company can rest on its laurels and be guaranteed success."
Buyers can already order a new Model Y across much of Europe, but Tesla's websites in Germany, Britain, France and Italy say estimated deliveries of the lowest-cost version — its biggest seller historically — will only start this month, so have yet to show up in sales data.
Tesla has also been offering financial incentives for purchases in Sweden, Germany, Britain and France in a bid to drum up demand. In Norway, it is offering interest-free loans for the new Model Y.
Quentin Wilson, founder of EV lobby group FairCharge, said Tesla's price cuts were stimulating sales, but with only the Model Y and Model 3 selling in large volumes, "things aren't looking great for the future of the brand".
Musk's close alliance with United States President Donald Trump and his embrace of far-right politics in Europe have led to protests against the billionaire CEO and his company, as well as vandalism at its showrooms and charging stations across the US and Europe.
Musk left the Trump administration last week, saying he would devote more of his time to running the carmaker.
The Model Y was Europe's best-selling car in 2023 but Tesla now faces more intense competition in a number of markets.
In Sweden, for example, sales of Volkswagen's electric ID.7 were almost twice those of the Model Y.
Tesla's mass-market Model 3 was also outsold in Sweden by electric models including Porsche's Macan, BYD's Seal and the G6 from Chinese EV maker Xpeng.
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