Tesla’s sales in France and Sweden fell for the third straight month in March, contributing to the company’s lowest first-quarter figures in both countries since 2021, official data showed on Tuesday.
The U.S. electric vehicle (EV) maker registered 3,157 car sales in France last month, a 36.8% decline year-on-year, while sales in Sweden dropped 63.9% to 911 units. Quarterly sales totaled 6,693 in France and 1,929 in Sweden. Tesla’s market share in France declined to 1.63% in the first quarter, while Chinese automakers, including BYD, saw their combined market share rise to 3.19%.
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The sales downturn comes as Tesla faces growing competition from both traditional automakers and emerging Chinese brands, which are introducing new and often more affordable EV models. The company is also preparing for the highly anticipated launch of a refreshed Model Y SUV.
Analysts say Tesla’s sales performance in Europe could be an indicator of its global first-quarter deliveries, which are set to be reported on Wednesday.
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In addition to competitive pressures, Tesla has faced political controversy in Europe. CEO Elon Musk’s public support for far-right parties, including Germany’s Alternative for Germany (AfD), has sparked backlash. Some analysts believe this may be impacting Tesla’s reputation among European consumers.
“In the United States, the strategy would be to tie to patriotism and shift to the right,” said Eric Schiffer, CEO of private equity firm Patriarch Organization. “The European strategy is going to be more challenged and will need to be more about value and competitive differences in the market there.”
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Tesla has also been targeted by protests and vandalism in several countries. In response to an overnight fire at a Tesla dealership in Rome that destroyed 17 vehicles, Musk called the incident “an act of terrorism,” echoing remarks made by former U.S. President Donald Trump.