The electric vehicle market in France is facing a significant setback as Tesla’s sales plummeted to just 700 units in May, marking a low not seen in over three years. Despite Tesla CEO Elon Musk’s assertion that there is no demand issue, the data from France paints a different picture.
The decline in Tesla’s sales is particularly alarming as it comes at a time when the Model Y changeover was completed, eliminating that as a potential reason for the drop in sales. In May, Tesla delivered only 721 vehicles in France, a staggering 67% decrease compared to the same period last year. This is a troubling trend for Tesla, especially considering that the overall auto market in France was down by 12% in May.
In the first quarter, Tesla attributed its poor performance to the lack of Model Y availability due to the design changeover. However, with the Model Y now in full production at Gigafactory Berlin and available in France, this excuse no longer holds up in the second quarter. Despite this, May marked Tesla’s worst month of deliveries in the past three years, even performing worse than any month in the first quarter.
While Norway remains a positive market for Tesla, thanks to its large base of existing owners updating to the new Model Y, the sustainability of this trend is uncertain. The overall outlook for Tesla in Europe is bleak, with the brand potentially facing long-term damage in the competitive EV market.
The disappointing results in France in May suggest a possible collapse in demand for Tesla vehicles. It is crucial for Tesla to address these issues and regain consumer confidence to maintain its position in the European market. Stay tuned for more updates on Tesla’s sales performance in Europe as more data becomes available.
