According to the European Automobile Manufacturers Association (ACEA), Tesla' s registrations have fallen by 42.6% since the start of the year. A slap in the face, even as the brand prepares to launch an updated version of its Model Y, the mid-size SUV that is supposed to revive the machine. But the momentum seems to have stalled.
In the face of Tesla, incumbent manufacturers such as Volkswagen and Renault are stepping up their efforts, while Chinese brands, armed with more affordable models, are rapidly gaining ground. The result is clear: in February, Tesla accounted for just 1.8% of the overall European car market, compared with 2.8% a year earlier. In the 100% electric car segment alone, its share fell from 21.6% to 10.3%. In the space of a year, this is more than an air pocket, it's a veritable nosedive: fewer than 17,000 vehicles sold in enlarged Europe, compared with more than 28,000 in the same period the previous year.
This downturn highlights a problem that has become blatantly obvious: Tesla's offering seems to be going round in circles. While its competitors are renewing their ranges in leaps and bounds, Elon Musk's brand has an aging and limited range. Added to this is a more insidious factor: the whimsical boss's political stances - notably his open sympathies for certain figures on the European far right - have undoubtedly not helped the brand's image in a market that is particularly sensitive to these issues.
Meanwhile, electric vehicles continue to soar. Sales of 100%-electric vehicles surged by 26.1% in February, even as the overall automotive market shrank by 3.1%. This is the second consecutive monthly increase. More broadly, electrified cars - whether 100%-electric, hybrid or plug-in hybrid - now account for 58.4% of registrations, compared with 48.2% a year ago. A silent but massive shift.
In this context, Tesla is trying to maintain a strategic foothold via a well-known mechanism: the resale of carbon credits. A European document has revealed that the brand allows more than half a dozen manufacturers to buy back its surpluses, in order to stay within the bounds of the new emissions standards that came into force in January. Problem: if sales continue to fall, this windfall could well evaporate, undermining part of Tesla's business model. However, a regulatory boost could help it gain time: Brussels is preparing to relax the rules by allowing emissions to be smoothed over three years instead of being assessed annually.
On the automaker side, positions are changing. Volkswagen gained 4%, Renault 10.8%, while Stellantis saw red with a 16.2% fall. SAIC Motor, despite European customs barriers, jumped 26.1%. Volvo Car, owned by China's Geely, fell by 15%. As for the newcomers who are not members of ACEA - such as BYD and others - they are gaining ground: their market share has risen from 1.5% to 2.5% in one year. Still modest, but significant.
At a national level, performances vary. Spain stands alone with an 11% increase in new car sales. Elsewhere, the climate is gloomy: -6.4% in Germany, -6.2% in Italy, -0.7% in France. Europe is certainly moving towards electric vehicles, although at very different speeds in different countries.
"2025 has got off to a very good start for the European electric car market", says Chris Heron, Secretary General of E-Mobility Europe. And he hails the already perceptible effects of the plans deployed by automakers to meet the new climate standards. Tesla, on the other hand, looks set to return to the pits.
With Reuters.
