Tesla’s monthly sales in Europe plunge by half, signalling backlash against Musk runs deep

A Model X sports-utility vehicle sits outside a Tesla store in Littleton, Colo., June 18, 2023. (AP Photo/David Zalubowski)

LONDON — Tesla sales across Europe plunged by half last month even as growth in the electric car market picked up pace, according to data released Tuesday.

The numbers are the latest indication of how much the Tesla brand is suffering because of the backlash against billionaire CEO Elon Musk over his far-right views.

Sales of Tesla vehicles in 32 European countries tumbled 49 per cent to 7,261 in April from 14,228 in the same month the previous year, according to the figures released by the European Automobile Manufacturers’ Association, or ACEA.

At the same time, sales of battery-electric vehicles by all manufacturers rose about 28 per cent. Meanwhile, sales of gasoline and diesel powered cars slumped.

The figures, which cover the European Union’s 27 member countries and five other nations outside the bloc, back up early data from Sweden, the Netherlands and Denmark released earlier this month that had pointed to a sales collapse.

U.S. President Donald Trump’s trade war has also turned Europeans off buying American brands. In recent days, Trump threatened to impose a 50 per cent tariff on EU goods, accusing the bloc of being “very difficult to deal with,” before agreeing to delay the duties until July.

In one sign that Tesla appears to be losing ground to cut-price Chinese brands, sales at China’s SAIC zoomed up 54% in April, according to the ACEA figures. SAIC owns a slew of auto brands including U.K.-based MG, known for its low-cost EV models.

Tesla is also suffering because it had to shut down factories for several weeks this year while upgrading its best selling Model Y sport utility vehicle, pinching supply.

For the first four months of the year, Tesla’s European sales fell roughly 39 per cent to 61,320 while the continent’s auto market as a while showed little change during the same period, according to the data.

For April, car sales in the EU edged up 1.3 per cent from the previous year, “showing signs of recovery despite the ongoing unpredictable global economic environment,” the group said in a press release.

Kelvin Chan, The Associated Press