Tesla Struggles in Europe: Sales Plunge Amid Competition and Regulatory Hurdles

Tesla's car sales in France and Denmark plummeted for the seventh month in July, struggling with CEO Elon Musk's controversial public image, regulatory issues, and increased competition from Chinese and European automakers. The company is aiming to revamp its lineup and expand self-driving features to recover European market share.

Sales of Tesla vehicles have nosedived in France and Denmark, marking the seventh consecutive month of decline. The electric vehicle manufacturer's struggles are largely attributed to CEO Elon Musk's contentious political views, stiff regulatory challenges, and fierce competition from European and Chinese brands.

With an aging lineup, Tesla faces significant pressure from lower-cost EV models, particularly those hailing from China. While a new Model Y and a more budget-friendly model are in the works, production delays mean ramp-up won't occur until next quarter. Sales dipped 27% year-on-year in France and 52% in Denmark as of July.

The absence of affordable cars and the phasing out of a $7,500 U.S. tax break compound its woes. Musk admitted tough European regulations on automated driving hinder sales of the Model Y's crucial self-driving feature. Nonetheless, the company is hopeful for market improvement once it aligns the European customer experience with the U.S. standards.

(With inputs from agencies.)