Tesla's Trouble in Europe: Musk's Political Missteps and Plunging Car Sales

Tesla's European sales have dropped by 40%, despite a surge in overall electric vehicle adoption. Controversial political statements by Elon Musk and regulatory delays contribute to the brand's challenges. Meanwhile, competitors like BYD gain market share. Tesla aims to boost sales with new, cheaper models.

Tesla faces a steep decline in European sales, decreasing by 40% in July compared to the previous year. This drop comes even as the electric vehicle market expands, according to the European Automobile Manufacturers' Association. The brand's market share in July was overtaken by Chinese competitor BYD, known for its increasing presence in the green vehicle sector.

The downturn coincides with political controversies ignited by CEO Elon Musk, who made inflammatory comments against European leaders, provoking protests across cities. His remarks have included endorsing far-right political candidates and critiquing current officials, which has led to backlash from the public and politicians alike.

In addition to the political fallout, Tesla's struggles are amplified by delays in regulatory approval for its Full-Self Driving software in Europe and interruptions in production for the Model Y. Nonetheless, the company is poised for a potential turnaround with plans to introduce less expensive models by the year's end.

(With inputs from agencies.)