Tesla, once a global trailblazer in the electric vehicle industry, is dealing with the consequences of tanking sales, more intense competition, and seemingly its CEO's recent aggressive political moves.
What's happening?
According to an article by Futurism, Tesla is experiencing a major decline in global sales, and especially in Europe. Compared to last January, Tesla's 18,161 sales in Europe represented a nearly 50% decrease.
This sharp decline coincides with the broader surge of nearly 34% in overall European EV sales, showing customers are turning away from Tesla despite still being interested in electric vehicles. Tesla's stock has also taken a hit, falling nearly 50% from a December 2024 high of $488.54 to under $240 in early March, and its market cap has dropped below $1 trillion for the first time since last November.
Many analysts have made a connection between Tesla CEO Elon Musk's position in Donald Trump's administration and Tesla's recent struggles.
"What's really telling is that Tesla's poor showing comes during what is otherwise a promising period for electric cars," said Futurism's Frank Landymore. "New EVs have grown by 34 percent in January to 124,341 units, despite overall new vehicle registrations declining by 3 percent."
Why is this change in sales important?
The consequences go beyond the political sphere. With diminishing confidence in the brand, the effect on resale value of Teslas globally is still unknown.
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A slowdown in Tesla's growth might also create a widespread problem that could influence sales across the EV market. Because the company has been instrumental in making EVs approachable in the common market, any deceleration in the industry could hold up efforts to reduce dirty fuel pollution.
While EVs obviously cause their own share of pollution, Recurrent projects that EVs drawing average amounts of power from the grid produce about half as much carbon pollution as gas cars.
What's being done about Tesla's growing problem?
Consumers can explore various alternatives and solutions on the individual level.
One option is to make your next car an EV. While Tesla has set a solid foundation and most of its models earn stellar reviews from car experts and buyers when evaluating the vehicles objectively, the expansiveness of the EV market is clear.
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Considering a new or used Tesla could mean a good value at the moment, depending on what prices look like in your area, but the increasing competition in the EV market has led to cheaper options across the board.
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