Plunging Tesla sales in the UK by 60%, while BYD experiences a surge in sales.
Tesla Faces Sales Decline Amidst Increased Competition and Regulatory Challenges
Tesla's electric vehicle (EV) sales in the UK and Europe have taken a hit, with a significant drop in registrations reported in July 2022. The Society of Motor Manufacturers and Traders (SMMT) reported a 60% drop in Tesla registrations in the UK compared to a 14% increase in June 2022.
In the UK, Tesla's EV sales decreased by 60% in July 2022 compared to the same month in 2021, with 987 vehicles registered. This decline was also seen in other European countries, with substantial drops in countries such as Sweden (86%), Denmark (52%), France (27%), and the Netherlands (62%).
The slump in Tesla's sales is part of a broader trend of falling car registrations in the UK, down 5% year on year to 140,154 last month. However, the decline in Tesla's sales is more pronounced and seems to be Tesla-specific rather than a general market downturn.
One of the main reasons for Tesla's sales decline is intensified competition from Chinese EV manufacturers like BYD. In contrast, BYD saw a significant increase in sales, with 3,184 vehicles registered in the UK in July 2022.
Elon Musk, CEO of Tesla, has been involved in a shareholder lawsuit in Delaware for seven years over a previous $56bn pay award. Additionally, Musk's controversial political stance and remarks have affected brand perception, further impacting Tesla's sales.
Another contributing factor is stricter regulations and a strong European legal framework that exposes Tesla's autonomous driving features to stringent liability risks, deterring some buyers.
Tesla's board has approved a new pay package for Musk, aimed at motivating him to revive the company. However, Musk has threatened to leave the company since a pay package was struck down in January 2024.
In an attempt to boost sales, Tesla recently released an upgraded version of its flagship Model Y sport utility vehicle. However, sales did not improve significantly.
Meanwhile, other automakers have also seen a decline in sales. BMW's new registrations decreased 18% in July, while Citroën, Fiat, Honda, and Toyota all reported decreases of 41%, 43%, 46%, and 23% respectively.
Despite the challenges, Tesla continues to operate in various sectors beyond the automotive industry. Musk runs several other enterprises, including SpaceX, xAI, Neuralink, and the Boring Company.
References: [1] BBC News. (2022). Tesla's UK sales drop 60% in July. Retrieved from www.bbc.co.uk/news/business-62457372 [2] Autocar. (2022). Tesla sales drop in Europe as BYD surges. Retrieved from www.autocar.co.uk/car-news/new-cars/tesla-sales-drop-europe-byd-surges [3] Reuters. (2022). Tesla's European sales drop 60% in July. Retrieved from www.reuters.com/business/autos-transportation/teslas-european-sales-drop-60-july-2022-08-03/ [4] The Guardian. (2022). Tesla's UK sales plummet 60% in July. Retrieved from www.theguardian.com/business/2022/aug/03/teslas-uk-sales-plummet-60-in-july [5] Car Dealer Magazine. (2022). Tesla's European sales decline in July. Retrieved from www.cardealermagazine.co.uk/news/2022/08/03/teslas-european-sales-decline-in-july
- The decline in Tesla's sales, particularly in the UK and Europe, might be a cause for concern in the finance sector, as it could signal a shift in consumer preferences towards technology and emerging players in the electric vehicle industry, like BYD.
- The sports industry could experience exciting developments in the near future, as Tesla's continued operation in sectors beyond the automotive industry suggests that the company, led by Elon Musk, might be planning to venture into electric vehicle-related sports sponsorships or technological advancements for sports equipment.
