Tesla Struggles to Veer Away from Sales Crash

Tesla CEO Elon Musk has spent much of this year focused on the carmaker’s robotics pursuits and winning shareholder approval for his freshly minted $1 trillion pay package.

Tesla's weak demand in China has been a key factor in the EV maker's overall performance. (Photo: Tesla Asia X)

In the meantime, the outlook for Tesla’s main business — selling cars — is darkening, Nick Carey and Abhirup Roy reported for Reuters.

Tesla faces sales pressure in the world’s three biggest car markets: Europe, China, and the United States.

The electric-vehicle (EV) maker’s sales fell 48.5% across Europe in October versus the same month last year, according to data released by the European Automobile Manufacturers' Association.

For the year, its sales are down about 30% in the region, while industry-wide EV sales jumped 26%. Tesla's global vehicle deliveries are expected to decline 7% this year, according to Visible Alpha, after a 1% drop in 2024.

This is despite record third-quarter deliveries, which were boosted by American car buyers racing to beat the September 30 expiration of an EV tax credit.

The weak European results suggest there will be no quick rebound from the sales turmoil that began late last year, after Musk publicly praised far-right figures, setting off protests across the region.

Musk has gone relatively quiet on politics in recent months, but Tesla’s European business has not recovered, signaling more fundamental problems.