Tesla (TSLA) Sales Plummet in France Despite Launch of Hot New Model Y

In May, Tesla’s sales in France dropped significantly, with only 721 units sold. This is a staggering 67% decline compared to the same month last year. It’s the worst performance Tesla has seen in three years. Even as the overall auto market in France was down 12%, Tesla struggled more than other brands.

Earlier this year, Elon Musk mentioned that Tesla doesn’t have a demand issue, despite challenges in Europe. He claimed that many companies face similar struggles. However, the latest figures tell a different story. Previously, Tesla attributed its poor Q1 results to the production change for the Model Y, but that excuse doesn’t hold water for Q2. Current trends indicate that sales are lagging even behind Q1 numbers.

Interestingly, the only bright spot seems to be Norway, where existing Tesla owners might be upgrading to the new Model Y. But whether this trend can last throughout the year remains uncertain.

One expert in the automotive industry suggests that Tesla’s reputation could take a hit. Tanya Jones, a market analyst, points out that consistent declines might discourage potential buyers. “People often look at recent sales trends as a sign of a brand’s reliability,” she said.

This downturn isn’t unique to Tesla. A recent report showed that 40% of electric vehicle brands in Europe faced similar sales challenges. Popularity spikes in earlier months couldn’t sustain, indicating a broader issue in the EV market, which may now be going through a correction phase.

The situation in France raises questions about Tesla’s future in Europe. If trends continue, the company may find it difficult to regain its former glory in the region. For now, the spotlight is on whether Tesla can turn things around as competition intensifies.

For more insights on electric vehicle market trends, you can check out resources from the International Energy Agency here.

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