AMSTERDAM, Netherlands: Tesla saw a sharp decline in sales across several major European markets in May, marking its fifth consecutive month of weaker performance in countries like Germany, the UK, and Italy.
While overall electric vehicle (EV) sales rose in these regions, Tesla lagged behind competitors. It faced pressure from growing Chinese EV rivals and customer backlash linked to CEO Elon Musk’s political activity.
The electric carmaker is hoping for a turnaround in June with the rollout of its revamped Model Y, once Europe’s best-selling car. Deliveries of the updated version are set to begin this month in markets including the UK, where a Tesla spokesperson said demand has already picked up.
In an email to the media, the spokesperson explained that the May drop was due to Tesla selling off existing inventory of the older Model Y. “We have been comfortably taking orders from customers for the new Model Y in Britain, with an increase expected for its June sales,” the spokesperson wrote.
Tesla’s updated Model Y is expected to refresh its aging product lineup as both legacy carmakers and fast-growing Chinese brands rapidly release new EVs.
In May, Tesla sales in Germany slumped 36.2 percent year-over-year to 1,210 units, according to the country’s road traffic agency KBA. Meanwhile, fully electric car sales rose nearly 45 percent. Chinese automaker BYD saw its own sales soar more than ninefold to 1,857 units.
The UK — Europe’s biggest EV market — saw a more than 45 percent drop in Tesla sales last month, even as overall EV registrations increased by 28 percent. Tesla dropped fifth in EV sales behind Volkswagen, BMW, and VW-owned brands Audi and Skoda, according to research firm New AutoMotive.
In Italy, Tesla’s May sales declined 20 percent, while the broader EV market grew by over 40 percent.
One bright spot for Tesla has been Norway, where deliveries of the new Model Y have already begun, and sales are picking up.
Despite the setbacks, Tesla remains optimistic that the new Model Y, produced in its Berlin Gigafactory, will help recapture momentum in key European markets in the months ahead.