Tesla sales slump continues in Europe despite growing EV market, zero interest loans offered in China

Sales of Tesla EVs have continue to plunge across Europe, even as the overall electric vehicle market strengthens, as the combined impact of CEO Elon Musk’s political postures and the wait for the new Model Y weigh on consumer minds.

Early data released from a number of countries show a mixed picture, with most reporting sharp falls in Tesla sales in the month of March, compared to the same month a year ago, and follow a dramatic plunge in sales in January and February in most of the EU and continental Europe.

In some countries the fall remained severe. In the Netherlands, Tesla sales were down 61 per cent month on month and 50 per cent for the March quarter, compared to the previous year, despite overall strength in the market.

In Sweden, the fall was 64 per cent month on month, and 55 per cent for the quarter, again with a stronger overall market, in Denmark the fall was 65 per cent, while in France the fall was 37 per cent in March and 41 per cent for the quarter, and in Austria it was down 34 per cent in March and 48 per cent for the quarter.

In some countries, Tesla was actually about steady with the same month a year earlier, thanks to early deliveries of the refreshed Model Y, with norw but 25 per cent for the quarter, and up two per cent in Portugal, although down 26 per cent for the quarter.

In Italy, Tesla’s new car registrations in Italy rebounded sharply in March (up 51 per cent year on year) after a plunge the previous month and were down just 7% year-on-year in the quarter as a whole, according to data from the Transport Ministry showed on Tuesday.

In Ireland, Tesla sales are up 5 per cent in the first three months of the year, although the overall EV market has surged ahead by 25 per cent, with the Model 3 jumping more than 40 per cent and the Model Y falling by the same margin.

There has been intense debate within Tesla circles – and more broadly – about the main causes of the slump, with some insisting it the result of a pause in Model Y because of the model’s refresh, and others pointing to a Tesla consumer boycott because it has become a toxic symbol of the Trump administration and Musk’s own work slashing government agencies.

The reality is that it will be a combination, and confirmation of that has come from the main Wall Street analysts who follow the stock closely, and who have all downgraded their sales forecasts for the first quarter – even though their previous forecasts had factored in the Model Y refresh and its impact on production and sales.

The extent of that fall will be revealed in the coming days when Tesla reveals its first quarter sales, with some predicting it could come in below 300,000, although the average analyst forecast is for around 350,000, still well down on earlier forecasts of well over 400,000.

China has emerged as a problem area, although this is more to do with the intense and growing competition from local EV makers rather than any aversion to autocratic leadership. Tesla has offered zero interest loans for the refreshed Model Y in its latest attempt to boost sales.

Norway, which is the most electric car market in the world with an electric plug in share of new car sales of more than 95 per cent, is an interesting case. Sales of the Model Y have rebounded in March after the January and February slump, and the car has regained its poll position, with its sales three times more than its closest rival.

But data from the local car industry shows that Model Y sales are still 9 per cent below the same month a year ago, and are down 41 per cent for the quarter. The Model 3 languishes in 7th place, although its sales are up sharply from a year ago when its sales also suffered a pause in the wait of its own refresh.

Protests, meanwhile, continue to grow across the US and Canada in particular, and acts of vandalism have also been reported, with 17 cars burned at an Italian dealership, after similar incidents in various US states and Canadian provinces over the past week.

Data for Australia will be released in coming days.