Tesla experienced a significant 18.6% decline in European Union sales during September compared to the same month last year, according to data released by the European Automobile Manufacturers’ Association (ACEA). The US electric vehicle manufacturer sold 25,656 units in the EU last month, down from 31,535 units in September the previous year, as Chinese competitors made substantial market gains.
Market Share Erosion for Tesla
The declining sales have directly impacted Tesla’s market position in the crucial European automotive market. The company’s EU market share fell to 2.9% in September, down from 3.9% a year earlier. When including the broader European market – encompassing the EU, European Free Trade Association countries, and the UK – Tesla’s sales still showed a concerning 10.5% year-on-year decrease, with 39,837 units sold in September.
BYD’s Remarkable Growth Surge
While Tesla’s numbers contracted, the overall battery electric vehicle sector in the EU expanded by 20% in September, reaching 167,586 units. The most dramatic growth came from Chinese manufacturer BYD, one of Tesla’s primary global competitors, which saw its EU sales surge by 272% year-on-year to 13,221 vehicles. This explosive growth boosted BYD’s EU market share from 0.4% to 1.5% in just twelve months.
Broader Performance Trends and Challenges
The September results continue a troubling trend for Tesla in Europe, where sales have plummeted 38.7% during the first nine months of the year compared to the same period in the previous year. Industry analysts point to multiple factors behind Tesla’s European struggles, including increased competition from Chinese EV brands, controversial political statements by CEO Elon Musk, and his interventions in European political matters that have potentially alienated some consumers.
