Tesla Shares Dropped 2.8% on European Sales Slump for Fifth Month as EV Rivals Gain Momentum

Tesla shares dropped 2.8% on European sales slump for fifth month as EV rivals gain momentum.

Tesla Motors's new car sales in Europe fell 27.9% in May from a year earlier even as fully-electric vehicle sales in the region jumped 27.2%, with the U.S. EV maker's revised Model Y yet to show signs of reviving the brand's fortunes.

Overall car sales in Europe rose 1.9%, with the strongest growth coming from plug-in hybrids and cars powered by alternative fuels, data from the European Automobile Manufacturers Association (ACEA) showed.

WHY IT'S IMPORTANT

Tesla's European sales have now fallen for five straight months as customers switch to cheaper Chinese EVs and, in some cases, protest against Tesla CEO Elon Musk's politics.

Tesla's European market share dropped to just 1.2% in May from 1.8% a year ago.

The revised Model Y is meant to revamp the company's ageing model range as traditional automakers and Chinese rivals launch EVs at a rapid pace amid trade tensions.

BY THE NUMBERS

May new car sales in the European Union, Britain and the European Free Trade Association rose to 1.11 million vehicles, following a 0.3% dip in April, ACEA data showed.

Registrations at Chinese state-owned SAIC Motor 600104.SS and Germany's BMW BMWG.DE rose 22.5% and 5.6% respectively, while they fell 23% at Japan's Mazda 7261.T.

In the EU alone, total car sales have fallen 0.6% so far this year.

That comes despite growing demand for EVs, with registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid-electric (HEV) cars rising 26.1%, 15% and 19.8% respectively.

EU sales of BEVs, HEVs and PHEVs combined accounted for 58.9% of passenger car registrations in May, up from 48.9% in May 2024.

Among the largest EU markets, new car sales in Spain and Germany rose 18.6% and 1.2% respectively, while in France and Italy they dropped by 12.3% and 0.1%.

In Britain, registrations were up 1.6%.