Traditional automakers overtake Tesla
Tesla’s dominance in the European EV market is being challenged by traditional automakers.
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Elon Musk’s Tesla, once the undisputed leader in the electric vehicle market, has been overtaken by BMW in Europe.
BMW’s electric cars outsold Tesla in July, delivering 14,896 units to beat Tesla by about 300 vehicles.
The German automaker’s sales represented a 35 per cent increase from the same month last year, while Tesla’s registrations dropped by 16 per cent.
The decline in Tesla’s sales comes at a time when Europe is recording a broader drop in EV registrations.
Approximately 139,000 new electric vehicles were registered in July, a 6 per cent decrease from a year earlier.
Market share for EVs slipped from 14.6 per cent in 2023 to 13.5 per cent in 2024.
JATO Dynamics global analyst Felipe Munoz said the “lack of clarity” around the incentives for EVs continues to present a barrier to consumers considering an EV.
“These factors, alongside the low residual value of EVs, contributed to the decline [in sales] seen in July,” he said.
Tesla’s sales performance has also been linked to consumer perceptions around Tesla chief executive Elon Musk.
Forbes reports that Musk’s increasingly public political views may be “driving away customers”.
At home, the ABC reported “a steep fall from grace” for Tesla in August, with YouGov data showing perceptions of the brand in Australia have progressively worsened for more than a year.
Social media users on X, the platform owned by Musk, suggested poor sales results reflected the entrepreneur’s outspoken views, and that “endorsing Trump has taken its toll”.
One user said he “cancelled my order for a model Y, and provided direct feedback to Tesla it was entirely due to Elon”.
Another tweeted that “I’ve owned two Teslas. I’ll never buy another while Elon is in charge and financially benefits from their sale. I’ve got tons of friends who are buying EVs and none of them will consider buying a Tesla for the same reason.
“It’s sad, because I’d love to see the company succeed otherwise.”
Another user said “it feels awkward cheering BMW, but here we are”.
BMW’s triumph over Tesla isn’t the first time Tesla has been outsold by an automaker.
Last year, Volvo overtook Tesla in several European countries.
Volvo’s market share rose significantly in 2023, with the Swedish automaker selling 16,746 EVs in Sweden and overtaking Tesla’s previous lead in Norway by early 2024.
Several brands, including MG and Lucid, are set to challenge Tesla with upcoming vehicles soon.
In response, Tesla is expected to launch cheaper models next year, aiming to maintain its market share as more automakers join the EV space.
The European Union is racing for more electric vehicle competition, particularly from China.
Proposed laws imposing a 35.3 per cent import tariff on Chinese EVs will go before the European parliament soon.
That tax would be in addition to the standard 10 per cent vehicle import duty imposed on foreign cars.
China’s commerce minister is expected to visit Europe this week to lobby against the proposed taxes.
Reuters reports that Spanish Prime Minister Pedro Sanchez is preparing to break ranks with European colleagues to “reconsider our position” surrounding Chinese EV tariffs, as “we don’t need another trade war”.
– with David McCowen
Originally published as Traditional automakers overtake Tesla
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