Slowdown for Tesla’s growth in Europe and around the world. The American manufacturer of luxury electric cars is seeing its sales fall, and investors are moving away.
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This is a first in four years, the group founded and led by American billionaire Elon Musk saw its deliveries decline by 20% in the first quarter of 2024. Globally, it sold just under 387,000 vehicles between January and March, a decline of 20% compared to the same period last year. Some 387,000 cars delivered compared to just over 430,000 manufactured, which means that stocks are swelling.
On the New York Stock Exchange, Tuesday April 2, Tesla shares lost more than 5%. A decline which continues to widen given the poor sales figures. All these elements added together make some analysts say that if Elon Musk does not correct the situation, Tesla is taking a rather dangerous turn.
Multiple difficulties
Tesla cites logistical problems with boat attacks in the Red Sea by Yemen rebels. In Europe, it is its industrial site near Berlin, in Germany – its only factory on the Old Continent – which is the subject of sabotage, recently by opponents of the far-left Volcan party, determined to put the billionaire’s group “on your knees”, to use the terms of the press release. Production had to be interrupted there for several weeks. Added to this are the difficulties of electric cars in general to establish themselves on the market. Confidence and hope in all-electric technology is faltering. Cars too expensive, limited charging capacities… Tesla may lower its prices, but nothing helps, on the contrary, because it appears to be an admission of weakness. More and more rental companies or traditional customers believe that they will lose when reselling vehicles.
The American discovers competition from groups like Stellantis (formerly PSA Peugeot-Citroën), or Renault, which offer electric cars that are much more agile and less expensive than the restrictive Tesla. Not to mention the Chinese, including BYD, who are flooding the market with their more competitive models. The turning point promises to be seriously complicated for Elon Musk and his dream of American hegemony.