By Alimat Aliyeva
The American electric vehicle (EV) manufacturer Tesla is facing
a noticeable decline in global sales, as it struggles to maintain
momentum in several key markets, Azernews
reports.
In Europe, Tesla has suffered significant setbacks in Germany,
France, and Sweden—countries traditionally seen as central to the
continent’s automotive landscape. In the United States, the
company’s image has also taken a hit, with CEO and majority
shareholder Elon Musk’s increasingly controversial political
activities—particularly his open support for former President
Donald Trump—generating backlash among more progressive
consumers.
Tesla’s previous success in China, the world’s largest market
for electric vehicles, is also waning. While the company reported
strong growth in China in 2023, sales have dropped sharply in 2024
due to intensifying competition from domestic manufacturers.
Between January and April of this year, Tesla sold 163,338 vehicles
in China. Although that figure remains substantial, it reflects a
declining market share.
China’s EV and hybrid market is expanding rapidly, yet Tesla’s
share is shrinking. The company, which ranked second in China’s EV
sales in 2023 and third in early 2024, has now slipped to fifth
place, holding just 4.6% of the market in the first four months of
the year.
Tesla is not alone in its struggle. Foreign automakers in
general are finding it increasingly difficult to compete in the
highly dynamic Chinese EV sector. German giant Volkswagen, once the
market leader, recently lost its top spot to Chinese automaker BYD,
which now dominates with a broad lineup of competitively priced and
technologically advanced electric models.
Analysts suggest Tesla’s performance is being affected not only
by competition and politics, but also by its aging product lineup.
While newer players like NIO, XPeng, and BYD are releasing frequent
updates and innovative features, Tesla’s core models—such as the
Model 3 and Model Y—have seen only minor refreshes. Industry
observers believe that without significant innovation or the
successful launch of next-generation models like the long-awaited
Cybertruck and a rumored affordable EV, Tesla risks losing its edge
in both domestic and international markets.
