Tesla’s new car sales in Spain dropped by 36% in April, reaching just 571 vehicles year-over-year, according to Reuters. This slump coincides with rising sales of electric vehicles made by other brands in the Iberian country.
Tesla’s sales in Spain reflect a broader trend across Europe, where sales plunged by 37.2% in the first four months of the year, even as sales of fully electric vehicles increased by 28% across the continent. Some countries saw steeper losses than others. For example, in Sweden, Tesla’s sales dropped 81%, marking the lowest level in nearly three years.
Political and Market Factors
Tesla’s poor sales results in Europe come amid growing protests from some buyers against CEO Elon Musk’s shift toward right-wing politics and his closeness with President Donald Trump, whose tariffs have contributed to global economic instability. At the same time, Europeans are increasingly buying more Chinese electric vehicles, including those from Tesla rival BYD.
Tesla’s sales have also dropped in the U.S., leading to weaker demand for the company’s new Model Y, according to Electrek. In response, Tesla has started offering discounts on the model, which was initially meant to help revitalize weakening demand.
In an effort to explore new markets, Tesla has recently expanded into Saudi Arabia and is testing the waters in India, despite the lack of charging infrastructure in both countries.
Author’s Opinion
Tesla’s struggle to maintain sales in Europe, despite the growth in overall EV demand, indicates that the company’s reliance on its existing markets and models may not be enough to sustain its dominance. With competition from traditional automakers and emerging Chinese brands, Tesla needs to reassess its strategy, particularly in regions with shifting political and economic landscapes. Expanding into new markets like Saudi Arabia and India is a good start, but without the infrastructure to support EV growth, long-term success may be difficult to achieve.
