It’s no longer time for celebrations at Tesla. The latest figures published by the European Automobile Manufacturers Association (ACEA) paint a worrying picture for the American manufacturer. In the space of a year, Tesla has lost more than 30,000 registrations on the European continent. A trend that is accelerating month after month and which could mark a decisive turning point in the history of the brand.
The end of the American dream in Europe
The observation is implacable. Tesla no longer makes people dream like it used to on the Old Continent. In November 2024, registrations fell to 18,786 units, compared to 31,810 over the same period in 2023. This decline results in a significant loss of market share, going from 3.6% to only 2.2%. A decline that is all the more worrying as it is part of an already negative annual trend with a 15.2% drop in registrations over the first eleven months of the year.
The situation does not improve by widening the scope of analysis. Including the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland) as well as the United Kingdom, the figures remain in the red. Tesla recorded a 28.4% drop in registrations in November, while its market share eroded from 3.4% to 2.5%. Over the whole year, nearly 45,000 fewer vehicles were registered compared to 2023.
The reasons for an unexpected decline
Several factors explain this disaffection among European consumers. On the front line, the controversial personality of Elon Musk plays a significant role. The CEO’s controversial positions on social networks and his unpredictable managerial decisions have damaged the confidence of potential buyers. Tesla’s premium and innovative brand image is tarnished, particularly among European customers sensitive to environmental and social issues.
The drastic reduction in government aid constitutes another major obstacle. Many European countries have reduced or even eliminated their financial incentives for the purchase of electric vehicles. This new economic situation directly impacts Tesla, whose models are positioned in the premium segment. Consumers, faced with galloping inflation, are naturally turning to more affordable alternatives.
A rapidly changing European market
The fall of Tesla paradoxically occurs in a context where the European market for electric vehicles remains dynamic. With an overall decline limited to 1.4% over the year, and even an increase of 0.9% in November, the sector demonstrates its resilience. This situation reveals a profound change in the consumption habits of Europeans.
Traditional manufacturers have been able to do well by offering electric models adapted to local expectations. Volkswagen, Renault, and Stellantis have invested massively in the development of vehicles combining performance, autonomy and competitive prices. Their in-depth knowledge of the European market and their well-established distribution networks give them a clear advantage over Tesla.
The offer has also diversified with the arrival of new Chinese players such as BYD or NIO, which offer technologically advanced vehicles at attractive prices. This increased competition is forcing Tesla to rethink its strategy in a market that it previously dominated without sharing.
- Tesla records historic 41% drop in sales in Europe in November 2024
- The personality of Elon Musk and the end of government aid partly explain this decline
- European and Chinese manufacturers are taking advantage of this situation to gain market share
