"Tesla trails Opel in German market dominance" or "In German auto industry, Opel surpasses Tesla in performance"
Tesla Faces Challenges in Germany's Electric Vehicle Market
Tesla, once a major player in Germany's electric vehicle (EV) market, has experienced a significant decline in sales and market share over the past year. According to recent data, Tesla's sales in Germany dropped by approximately 57.8% from January to July 2023, with only around 10,000 units sold during this period [1][4].
Several factors contribute to this decline. Intense competition from Chinese EV manufacturers, particularly BYD, has been a significant challenge. BYD's German sales surged nearly fivefold in July 2023, reaching 1,126 units, and their year-to-date sales in Germany jumped to 7,449 units [1][4][5].
Another factor is the backlash and reputation challenges related to Elon Musk's political views. Musk's endorsements for Donald Trump have adversely impacted consumer enthusiasm for Tesla in Europe, contributing to weaker sales [2][5].
Regulatory and market environment hurdles have also impacted Tesla's performance. The company faces rising tariffs on Chinese imports, expiring U.S. EV tax credits, and increasing regulatory scrutiny in European markets [1][4].
Product and supply challenges have further contributed to Tesla's sales decline. Despite a revamped Model Y, Tesla has struggled to reverse the sales decline, suggesting the product refresh was insufficient to offset broader headwinds [1][2].
The decline in Tesla's market share mirrors trends across Europe where Tesla's sales have fallen by over 40% in mid-2023, with even steeper declines in some markets like the UK (-60%) and France (-27%) [3][4][5].
Tesla's competitors, such as Volkswagen, Renault, and Opel, offer genuine entry-level models at lower prices than Tesla, as shown by CAR's analysis of transaction prices. The Opel Corsa Electric GS, priced at 23,400 euros, could explain how Opel managed to overtake Tesla in the German EV market [1].
Volkswagen dominated the electric car market in Germany with a market share of 20.7% in July 2023, selling around 9,000 electric vehicles in that month, almost as many as Tesla has sold in the whole year [1]. BMW also performed strongly in the German electric car market, with almost every tenth registered vehicle coming from the Munich-based automaker [1].
Despite these challenges, Tesla is expected to continue with the aging Model Y and Model 3 in tough competition. An attractive entry-level model promised by Tesla for the end of the year is not expected to significantly improve Tesla's market position, especially if it is just a cheaper version of the Model Y [1].
Ferdinand Dudenhöffer from CAR Bochum attributes Tesla's decline mainly to an outdated model range [1]. According to Dudenhöffer, Tesla is unlikely to bring any new models to market in the next three to four years [1]. Elon Musk has been talking about robotaxis and humanoid robots, but Tesla's core business is facing challenges [1].
In absolute numbers, Tesla's sales in Germany have decreased significantly compared to the same period in 2023. The Model 3 and Model Y, Tesla's current models, have prices around 41,000 euros and 45,000 euros respectively, which are above the average price of around 35,600 euros for electric cars in Germany [1]. These high prices, combined with the technology they offer, have made the Model 3 and Model Y unattractive to buyers [1].
[1] - https://www.car-bochum.de/ [2] - https://www.bloomberg.com/ [3] - https://www.autobild.de/ [4] - https://www.handelsblatt.com/ [5] - https://www.spiegel.de/
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