Tesla is losing ground in both Europe and the US. Advancing Chinese and Germans
The Texan brand is being chased in the Old Continent by German and Chinese brands, while in the US the Koreans, but also Ford and Rivian are on the rise. And since the Cybertruck has not broken through, something new is needed.
2' min read
2' min read
That it is not a good year for Tesla had long been understood. After last year's record results that saw the electric car manufacturer celebrate the world's first best-selling battery-powered car, the Model Y, 2024 did not go so well. The latest figures from the UK's Jato Dynamics Institute for the first six months of this year show that Tesla has lost ground in both the US and Europe, where sales are down 8% and 13% respectively. All this even though overall demand for electrics has grown in both regions despite the public not being enthusiastic about electrics.
Sales drop, but also market share reduction
.In Europe, the sales volume of the American brand dropped from 185,200 units in the first half of 2023 to 161,300 units in the same period this year. However, overall registrations of electric cars grew by 1.7 per cent in the same time period. This means that Tesla's market share in the European market fell this year from 19.8% in 2023 to 17.2% in 2024. Tesla has lost ground to the Geely Group, which is especially strong due to the success of Volvo EX30 and also the Bmw Group due to the success of its latest models. Other Chinese brands also grew, especially thanks to Byd.
The negative trend is similar in Europe as in the US
.Tesla's sales volume dropped from 324,900 units in the first half of 2023 to 299,200 units in 2024. Meanwhile, overall sales of electric cars increased by 7.6 per cent over the same period. As a result, Tesla's share dropped from 59.8% in 2023 to 51.2% in 2024. Tesla remains the dominant brand in the US market, but has to contend with many competitors who have performed well unlike Tesla, which has to contend with declining sales. Hyundai grew by 34%, Ford by 48%. Rivian by 77% and Kia by as much as 110%. The competition is pressing, but what are the reasons for Tesla's decline?
Here are the main reasons for Tesla's decline.
This is indicated by Felipe Munoz ceo of Jato Dynamics himself. Growth cannot go on forever, especially if Tesla's offering is limited and in part even dated. The Model 3 was updated in 2023 but dates back to 2017. The Model Y is already five years old and the Model S has been on sale since 2010, while the Model X has never taken off. While in Europe, Tesla suffers pressure from the German and Chinese brands, in the US Ford, the Koreans and Rivian are gaining market share. Not to mention that Tesla's newest electric car, the Cybertruck, sold only 11,300 units in the US in the first half of 2024. Tesla, in short, absolutely needs new models.
