Tesla's Europe sales plunge for 5th straight month over lingering Musk brand damage

Core Insights - Tesla's vehicle sales in Europe have declined for five consecutive months, with a 27.9% drop in May compared to the previous year, while the overall electric vehicle market in the region grew by 27.2% [1][6] - The company's market share in Europe fell to 1.2% in May, down from 1.8% a year earlier, indicating significant challenges in maintaining competitiveness [4][5] Sales Performance - Tesla's new car sales in Europe decreased significantly, contrasting with the overall growth in electric vehicle sales and total car sales in the region [1][6] - Rival Chinese automakers have gained traction, with sales reaching 65,808 units in May, doubling their market share to 5.9% [5] Brand Impact - The brand damage stemming from Elon Musk's political involvement during the Trump administration is particularly pronounced in Europe, affecting Tesla's sales performance [4][8] - Analysts suggest that while the refreshed Model Y could help mitigate some challenges, the European electric vehicle market remains highly competitive and difficult for Tesla [4] Market Trends - Despite a 0.6% decline in total car sales in the European Union this year, demand for electric vehicles has surged, with registrations of battery-electric vehicles (BEV), plug-in hybrids (PHEV), and hybrid-electric vehicles (HEV) increasing by 26.1%, 15%, and 19.8% respectively [6] - Electric vehicles accounted for 58.9% of EU passenger car registrations in May, up from 48.9% the previous year, highlighting a growing trend towards electrification in the automotive market [7]