More bad news for Tesla, which also previously saw a recent disappointment in its Q1 earnings report.
Now, the American automaker has been revealed to only have registered 13,591 vehicles in Europe during April, putting its sales at a new 15-month low in the region.
Lowest Since January
Tesla Fans Schweiz
The European Automobile Manufactures’ Association (ACEA) said Wednesday that Telsa only registered 13,951 vehicles in April, which is the worst it has been since January 2023.
Shares of Tesla stock declined 1.8% before trading began Wednesday, and the company’s stock has declined by 25% since the start of this year.
Disappointing Earnings
These numbers have to be disappointing news for investors, who were hopeful for a rebound after Tesla’s Q1 earnings report. Tesla saw a 9% drop in first-quarter revenue, which is the biggest decline for the company since 2012.
“We think Q2 will be a lot better,” Musk said during Tesla’s first-quarter earnings call in April.
European Market Growing
Despite Tesla’s disappointing numbers, it seems to be the exception in Europe. The ACEA report released Wednesday found a boom in all major markets.
“In April 2024, the European Union car market grew by 13.7%, with new registrations totalling 913,995 units, driven by strong increases across all major markets: Spain (+23.1%), Germany (+19.8%), France (+10.9%), and Italy (+7.7%),” the report said.
Sales Holidays
The ACEA report was sure to note that part of the growth numbers comes down to a simple change in the calendar.
“This growth can be partly explained by the fact that there were two extra sales days compared to the same month last year, when Easter holidays fell in April,” said the report.
Not the Full Story
Despite the Easter holidays taking some of the credit, there is still a trend of EV growth in the European region in recent months.
“During the first four months of the year, new car registrations in the European Union increased by 6.6%, reaching nearly 3.7 million units. Solid growth was recorded in the region’s largest markets over the period, with Germany and Spain each seeing a 7.8% increase, followed by France (+7%) and Italy (+6.1%),” said the ACEA report.
Sales in China
In addition to bad news from Europe in April, Tesla also saw a decrease in shipments from its Shanghai factory amidst China’s strong growth last month, when it saw record-high exports.
At the end of 2023, Chinese company BYD surpassed Tesla as the world’s largest electric vehicle provider. However, it had to hand the title back to Tesla after it posted its own disappointing Q1 earnings results which showed sales fell 43%.
China’s Rise
In recent years, China’s EV industry has seen a dramatic rise. In 2023, China’s EV sales accounted for 60% of the entire world’s sales of electric vehicles.
China is able to compete by making vehicles at entry-level prices thanks to advantages in manufacturing and government subsidies.
Price Importance
Consistent surveys of American EV drivers find that price remains the top concern of customers, a factor that can explain why American companies are struggling to inspire demand.
Price typically ranks first with safety being a second top consideration. In October, a report by the Texas Public Policy Foundation found that the hidden costs of owning an EV equates to paying $17 a gallon.
US EV Demand
Despite initial excitement around EVs when advanced models started to hit the market, in recent months demand has flattened out in the US.
Q1 sales only increased 2.6% year over year in 2024, and EV sales have fallen 15.2% compared to Q4 2023.
Euphoria is Dead
In March, CNBC reported that ‘EV euphoria is dead’ and automakers like Ford Motor, General Motors, Mercedes-Benz, and Volkswagen were scaling back and delaying plans for electric vehicle models.
Instead, it seems the market is going more toward offering a selection of gas-powered, hybrid, and electric vehicles as options.
Temporary Spike
In March, Marin Gjaja, chief operation officer for Ford’s EV unit lamented the fleeting demand for EVs.
“What we saw in ’21 and ’22 was a temporary market spike where the demand for EVs really took off,” said Gjaja, during an interview with CNBC. “It’s still growing but not nearly at the rate we thought it might have in ’21, ’22.”
