Tesla (NASDAQ:TSLA) saw a significant decline in its electric vehicle sales across Europe in February, falling behind legacy automakers Volkswagen (VWAGY) and BMW (BAMXF), as well as several rising Chinese competitors, according to data from JATO Dynamics.
The company registered fewer than 16,000 battery-electric vehicles in 29 European markets a 44% drop from the same month last year. Tesla's European market share slipped to 9.6%, its weakest February figure in five years. JATO analyst Felipe Munoz noted that Tesla's limited model range increases its vulnerability during transitions, such as the current phaseout of the Model Y.
The decline follows increased regional competition and controversy stemming from CEO Elon Musk's political activity, including his public support for far-right European parties on X, his social media platform.
Meanwhile, Volkswagen's battery-electric vehicle sales surged 180% to nearly 20,000 units, and BMW, along with its Mini brand, delivered close to 19,000. Chinese brands BYD (BYDDF) and Polestar (NASDAQ:PSNY) also recorded sales gains of 94% and 84%, respectively. Xpeng (NYSE:XPEV) and Leapmotor expanded their presence as well.
Still, not all brands advanced. Volvo (VLVLY), owned by Geely, and MG under SAIC, posted year-over-year BEV sales declines of 30% and 67%, respectively.
Despite a 3% dip in total car sales across Europe, battery-electric vehicle registrations rose 25%, signaling continued demand for EVs even as Tesla's position weakens.
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