Tesla(US:TSLA) Zhi Tong Cai Jing·2025-08-01 13:02Core Viewpoint - Despite significant improvements to the globally popular Model Y, Tesla's new car registrations in several key European markets saw a substantial decline in July, attributed to CEO Elon Musk's aggressive political stance in Europe, regulatory challenges regarding autonomous driving, and increasing competition from low-cost electric vehicle manufacturers, particularly from China [1][2]. Group 1: Sales Performance - Tesla's vehicle registrations in Europe continued to shrink, with July showing a year-on-year drop: 86% in Sweden (163 units), 52% in Denmark (336 units), 27% in France (1,307 units), and 62% in the Netherlands (443 units) [1]. - In the first half of the year, Tesla's sales in the European market decreased by over one-third compared to the previous year [2]. - Conversely, in Norway and Spain, Tesla's registrations increased by 83% and 27% respectively in July, reaching 838 and 702 units, with Spain's overall electric vehicle sales surging by 155% [3]. Group 2: Market Challenges - Tesla is facing intensified competition from a wave of low-cost electric vehicle rivals, particularly from new Chinese entrants, while the company is launching a revamped Model Y and a more affordable new model, which will see significant production increases only in the next quarter [1]. - The company anticipates "several very difficult quarters" ahead, especially with the impending expiration of a $7,500 tax credit in the U.S. market [3]. - Regulatory challenges in Europe regarding autonomous driving are complicating sales growth for the Model Y and the promotion of the Full Self-Driving (FSD) subscription service [3]. Group 3: Future Outlook - Tesla plans to launch the updated Model Y long-range all-wheel drive version in Europe by March 2025, with two rear-wheel drive versions starting sales in May [4]. - The company has not indicated plans to introduce more affordable entry-level electric vehicle models before the last three months of the year [3].