Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) Model Y sales across Europe were rough for the U.S.-based electric vehicle (EV) maker. They were worst in Sweden, where sales fell 87% year over year in August. The Model Y was the best-selling car in Europe in 2023.
Overall, Tesla sales across all models dropped sharply in Denmark, the Netherlands, and France, but they rose in Spain, Portugal, and Norway. European sales figures are based on vehicle registrations.
Observers made two points: Elon Musk’s relationship with Donald Trump has hurt Tesla’s image, and the markets are awash in inexpensive used Teslas. The used inventory is a problem in America as well.
Musk has to solve the dual problems of his tarnished image and strong competition. There is no solution for the first problem, at least not in the short term. The second involves discounts and the addition of revolutionary features. The most likely large change in features is a fully self-driving car. Tesla cars currently have a self-driving feature that requires the driver to keep an eye on the road.
A recent Wall Street Journal article reported that there are dozens of Chinese EV makers. Some will fold because of the tremendous competition. Others will eventually follow giant BYD into Europe, Southeast Asia, and South America.
U.S., Japanese, and European fossil-fuel car companies have tried to compete with Tesla. So far, all they have to show is tens of millions in losses. Yet, they keep throwing EVs into the market. Bit by bit, they are nibbling away at Tesla’s market share. None is a problem by itself. As a group, they present a challenge.
Tesla’s problems are greater than its sales slump in Sweden.
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