Tesla Faces Rough Roads: European Market Share Drops Amid Rising Competition

Tesla's European market share declined as sales dropped for the second month, despite rising overall electric vehicle registrations. The company faces competition from traditional rivals and new entrants, along with controversies involving CEO Elon Musk. Efforts to sell carbon credits are underway amidst evolving EU emission targets and regulations.

Tesla's grip on the European market is loosening as the electric vehicle pioneer saw its market share decrease again in February. New data from the European Automobile Manufacturers Association (ACEA) reports a significant 42.6% downturn in Tesla's sales compared to last year, whereas electric vehicle registrations continue an upward trend on the continent.

Amid Elon Musk's growing controversies and faced with an aging lineup, Tesla sold less than 17,000 cars in key European markets, a stark contrast to over 28,000 units in February 2024. The competition is mounting with traditional automakers and new Chinese players continuously introducing more affordable electric models.

In an attempt to circumvent challenges, Tesla has formed a pool to sell carbon credits to numerous automakers striving to meet stringent EU emission targets. Simultaneously, a shift in EU regulations could relax emission measures, potentially impacting Tesla's strategy. While some brands witness rising sales, Tesla grapples with maintaining its foothold in a dynamic automotive landscape.

(With inputs from agencies.)