Once again, Tesla reported the loss of its market share in Europe, marking its sixth consecutive month of declines. However, this U.S. car company is not the only one as fellow automakers suffer similar reduction.
According to the European Automobile Manufacturers Association (ACEA), Tesla’s market share in the European Union, Britain and the European Free Trade Association in June fell from 3.4% last year to 2.8%. Its car registration also dropped to 34,781 units, a 22.9% reduction YoY.
The automaker booked $22.5 billion in revenue for the second quarter, falling short of analyst estimates and down from $25.5 billion a year earlier.
Profit per share also came in below Wall Street expectations, although Tesla managed to surprise with a stronger-than-anticipated automotive gross margin, standing at 14.96%, excluding revenue from regulatory credits.
The company also reported a sharp decline in sales of regulatory credits—down 51%—which hurt both top and bottom-line results. Tesla global deliveries slumped 13.5% in the second quarter, despite the release of a refreshed Model Y, and the company remained noncommittal about its full-year deliveries forecast, citing economic uncertainty and the timing of the new model launch.
Nonetheless, other four major automakers in Europe also reported losses as Volkswagen and Stellantis found their car registrations fell by 6.1% and 12.3% YoY, respectively. Meanwhile, Renault and Hyundai also admitted that their sales have dropped.
ACEA stated that car sales across Europe in June has dropped by 5.1% YoY to 1.24 million units. The region faced several challenges recently, from the 25% U.S. import tariffs, the expiration of the U.S. federal EV tax credits, to the Chinese car brands’ tough competition.
According to JATO Dynamics, the market share of Chinese car brands in Europe has been gaining, hitting a record of 5.1%. Among these brands are BYD, Leapmotor and Xpeng. Ben Nelmes, founder of analysis firm New AutoMotive, stated that Tesla’s only hope is its new technologies as these tech can disrupt the market and help the company surpass other brands.
