New reports from around the globe show that Tesla’s (TSLA) demand issues in August persist in key regions, including a new growth territory: India.
In France, Tesla registered only 1,331 vehicles compared to 2,532 a year ago, representing a 47.2% drop, according to the PFA auto lobby. Meanwhile, overall August auto sales in France were up 2.2% in the month.
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Tesla sales in Sweden (down 84%) and Denmark (down 42%) tumbled as well, per Mobility Sweden and Mobility Denmark. EV-crazed Norway was a lone bright spot, with sales up nearly 22%. Germany and the UK, Tesla’s two other larger territories, will report August sales later this month.
Tesla stock was down less than 1% in early trading on Tuesday.
Weakness in Europe is not a new trend for the automaker, as the ACEA reported that overall July sales tumbled over 40% year over year, though Tesla’s early quarter shipments are generally for non-EU markets. Nevertheless, a drop of over 40% strongly hints at trouble.
In Europe, the introduction of the revamped Model Y appears not to be enough to blunt rising competition and CEO Elon Musk’s deep unpopularity. China’s BYD (BYDDY), which sells both full EVs and hybrids, saw registrations surge 225% in July to 13,503, easily topping Tesla.
Depressed demand is also an issue in China, though not to an extreme degree as seen in Europe. Tesla’s China sales dropped 4% in August from a year earlier, following an 8.4% slip in July, per Reuters, though sales were up month over month.
The sales environment in China is brutal, with heavy domestic competition from BYD, XPeng (XPEV), Li Auto (LI), Nio (NIO), and upstarts like Xiaomi (1810.HK). Tesla has tried to boost its aging product portfolio with the refreshed Model Y, which came out earlier this year, and the all-new Model Y L, a six-seater version of the Model Y that went on sale last month.
New markets like India, where Tesla was looking to plant a flag in a high-growth region, have not yet produced results. Per Bloomberg, Tesla received orders for 600 cars since launching sales in mid-July, which is well below the company’s internal estimates, according to people familiar with the matter.
Tesla now plans to ship 350 to 500 cars to India this year, and the first batch is slated to land from Shanghai in early September. Tesla originally aimed to utilize its full 2,500-car annual quota this year, Bloomberg News reported earlier.
Foreign-made autos are tariffed heavily in India due to the country’s protectionist measures, which means the Model Y will cost around $70,000. While India’s middle class is growing, those who can afford the $70,000 Model Y are still a small subset of that group.