Europeans continue to shun Tesla as April sales plunge

By Alessandro Parodi

(Reuters) -Tesla's sales plunged across Europe in April, including an 81% drop in Sweden to their lowest level in 2-1/2 years, data showed on Friday, as Europeans buy more Chinese EVs and some protest against CEO Elon Musk's political views.

The automaker's sales have dropped for four straight months across much of Europe. For the first quarter, sales of all fully-electric cars rose 28% in Europe while Tesla's sales slumped 37.2%.

In Sweden, Tesla's new car sales in April plunged 80.7% to their lowest since October 2022. Its sales in the Netherlands fell 73.8% to their weakest for that month since 2022 and were down 33% in Portugal, a bigger drop than the previous month.

Sales in Denmark dropped 67.2%, data showed on Thursday, while France reported a 59.4% fall.

The figures will increase doubts about whether the launch of a revamped Model Y in some countries can revive Tesla's fortunes in Europe.

Car buyers can already order a new Model Y across much of Europe, but Tesla's websites in Germany, Britain, France and Italy all say estimated deliveries will start in June. It will take a couple of months before sales data shows if the updated version of the car has won back consumers.

Meanwhile, the group is offering car loan discounts and other financial incentives for new purchases of its existing models in Norway, Sweden, Germany and Britain, in a bid to drum up demand.

Tesla is battling increased competition from traditional automaker rivals, while new Chinese entrants are launching new and often cheaper EVs.

"Tesla's technological lead has largely been eroded with the current model lineup," said Andy Leyland, co-founder of supply chain specialist SC Insights. "Competition from both legacy auto and Chinese entrants will be weighing on sales."

Musk, a close ally of U.S. President Donald Trump, has been involved in the Department of Government Efficiency, leading efforts to cut federal jobs. But he said last week he would cut back on the time he devotes to the Trump administration and spend more time running Tesla.

The company's first-quarter auto revenue slumped by a fifth, and net profit plunged 71%, both missing Wall Street estimates.

On Thursday, its Chair Robyn Denholm denied a Wall Street Journal report that board members were looking for a new CEO.

Tesla did not immediately respond to a Reuters request for comment.

'REPUTATIONAL HIT'

Musk's embrace of far-right politics in Europe has led to protests against the billionaire CEO and the company, as well as vandalism at its showrooms and charging stations across the U.S. and Europe.

"The brand has taken a reputational hit here in Europe," said Electrifying.com CEO Ginny Buckley, adding that 59% of respondents said that Musk had made them less likely to buy a Tesla, in a survey of 1,642 people between March 24 and April 11.

The brand sold 203 vehicles in Sweden in April, data from Mobility Sweden showed.

In the Netherlands, it sold 382 cars in April, based on data released by car industry bodies BOVAG, RAI Vereniging and RDC.

Tesla's sales in Portugal were down to 302 vehicles in April, industry association ACAP said, while sales in Norway rose by 11.8% to 976 cars, based on Norwegian Road Federation data.

Tesla sold 28.2% fewer cars in March in Europe, based on data from the European Automobile Manufacturers Association published last month.

In the same period, its Chinese competitors BYD, Chery and SAIC recorded increases of 223%, 2,467% and 4% respectively in combined sales of battery-electric and plug-in hybrid vehicles in the EU, data released on Friday by research firm Rho Motion showed.

Other European countries, including Italy, will release April car sales data on Friday.

(Reporting by Stine Jacobsen, Alessandro Parodi, Terje Solsvik, Andrei Khalip and Nick Carey. Editing by Anna Ringstrom, Jane Merriman and Mark Potter)