Tesla's performance in France has reached a concerning milestone as first-quarter sales dropped to their lowest level since 2021, marking a notable decline for the electric vehicle manufacturer.
The latest data reveals Tesla registered 3,157 car sales in France during March 2023, representing a steep 36.83% decrease compared to the same period last year. The quarterly figures paint an even starker picture, with sales plummeting 41.1% in France.
The company's market share in France has contracted substantially, falling to 1.63% in the first quarter from 2.55% a year ago. Chinese electric vehicle manufacturers, including BYD, have gained ground during this period, increasing their collective market share to 3.19%.
Industry experts attribute Tesla's declining performance to multiple factors, including an aging product lineup and intensifying competition from both traditional automakers and Chinese newcomers offering more affordable electric vehicles.
The downturn extends beyond France, affecting several European markets. Sweden, Denmark, and the Netherlands reported substantial quarterly sales decreases of 55.3%, 55.3%, and 49.7% respectively. However, Spain and Portugal showed some resistance to this trend, with March registrations increasing by 34.3% and 2.1% respectively.
Recent controversies surrounding CEO Elon Musk's political statements have also impacted the brand's reputation in Europe. Tesla dealerships have faced vandalism in multiple European cities, including Rome, Berlin, and Stockholm.
As Tesla prepares to release its global first-quarter delivery figures, these European market challenges suggest a testing period ahead for the electric vehicle pioneer.