Tesla’s European sales fall for a fifth month in a row

Electric carmaker struggles as consumers turn to cheaper rivals amid a backlash against Elon Musk

Tesla sales in Europe fell for the fifth consecutive month in May even as demand for electric cars continued to increase.

The electric carmaker sold 8,729 vehicles across the European Union last month, figures from the European Automobile Manufacturers Association showed, 40.5 per cent down from the 14,682 cars sold in the same month last year.

The decline meant that the carmaker’s EU market share dropped from 1.6 per cent to just 0.9 per cent.

The company has been relying on the updated Model Y to regain ground in Europe, but buyers are opting for cheaper Chinese electric cars, while controversy around the political views of Elon Musk, the chief executive, continues to weigh on consumer sentiment.

The data highlights the problems facing Musk, who has cut back his work for President Trump’s administration to focus on Tesla, one of the world’s most valuable carmakers.

Battery-electric vehicle registrations in the EU rose 25 per cent year on year to 142,776, while plug-in hybrid sales surged 46.9 per cent to 87,301 units.

Germany remained the largest adopter of battery-electric vehicles on the Continent, with 43,060 registered, up 44.9 per cent on the previous year. In France there was a decline, with registrations falling to 19,414 from 23,892.

As buyers increasingly turn to cheaper alternatives, China’s SAIC Motor enjoyed 18,716 sales in May — up from 13,562 last year — lifting its market share to 2 per cent.

In the UK, Tesla sold 2,016 units last month. Another Chinese rival, BYD, outperformed it for the second month in a row, selling 3,025 units, according to separate figures from the Society of Motor Manufacturers and Traders.

However, the Chinese carmaker, which sold 4.27 million cars last year, is said to have been adjusting its strategy. It scaled back some of its production and delayed plans for expansion as it works through rising inventory levels in its home market despite price cuts. It has cancelled night shifts and reduced output by at least a third of the capacity at some of its factories, according to Reuters.

The figures also showed that in the five months to May hybrid-electric cars remained the most popular choice of buyers in the European Union, taking 35.1 per cent of the market share, while petrol dropped to 28.6 per cent from 35.6 per cent last year.