Week 18 of Tesla: Leasing offers, buzz about Musk's termination, semi-controversial, conservatives' quarrel (regarding AfD dispute)
In a significant shift for the electric vehicle industry, Tesla's Semi truck production is set to commence by the end of this year at a newly constructed factory in Nevada, as confirmed by Dan Priestley, head of the Semi program at Tesla. However, the company has faced challenges in Europe, with a 45% decrease in electric car sales during the first quarter of 2025 compared to the previous year.
Tesla's European sales decline was attributed to several factors, including outdated product offerings, reduced subsidies, increased competition from hybrids, brand perception issues, and market pressure. The company's Model 3 and Model Y faced tough competition from newer, more affordable European and Chinese models, making cheaper alternatives more attractive. Cuts in EV incentives in markets like France disproportionately impacted premium brands such as Tesla, while plug-in hybrid and mild hybrid vehicles captured a significant portion of the EU market. Controversies involving Elon Musk and resulting consumer backlash weakened Tesla's premium brand image in Europe, and market pressure led to a 29% overall drop in Tesla's car sales in Europe by May 2025.
However, Tesla began regaining momentum by June 2025. The availability of the new Model Y improved, driving explosive sales growth especially in the UK, Spain, and the Netherlands. In June, Tesla's UK sales rebounded 14% year-over-year with a 224% month-over-month jump, Spain saw registrations more than triple, and the Netherlands reported Tesla as the best-selling car brand across all segments for the month.
To improve sales in the region, Tesla is focusing on ramping up the new Model Y availability in Europe and adjusting to local market demands and ramping deliveries to key European countries where demand is recovering. Analyst Dan Ives estimates that Musk will remain as CEO of Tesla for another five years, and the company is offering the Model Y and Model 3 with subsidized interest rates and leasing rates in several European countries.
Despite these challenges and changes, Tesla's board chair, Robyn Denholm, has denied reports suggesting a successor for Elon Musk, stating that they are false. Fund manager Ross Gerber has suggested JB Straubel, a co-founder of Tesla and a current board member, as a potential successor to Musk.
It is worth noting that Tesla did not respond to a request for comment before the article was published, contrary to Musk's claims. The first truly autonomous Tesla rides, announced in January, are set to begin in Austin, Texas, from June, with a safety driver behind the wheel. The basic version of the new Model Y, which received a slightly larger battery with the refresh, is not yet included in the registration figures.
In other news, sales of Tesla electric cars in Sweden, the Netherlands, Denmark, France, and Norway were significantly lower in April 2025 compared to the previous year. Both Elon Musk and US Secretary of State Marco Rubio have criticized developments in Germany, with Musk expressing concerns over the classification of the AfD as a right-wing extremist movement, and Rubio claiming that the political establishment's open border policy is extremist. Relations between Germany and the USA, strained by Trump's activities, do not currently appear to be improving. The Wall Street Journal's report only mentioned one or more members of the Tesla board, not the entire board, in their report suggesting that the board is preparing for a successor to Elon Musk.
- The electric vehicle industry is experiencing a significant shift as Tesla's Semi truck production will commence by the end of the year at a newly constructed factory in Nevada.
- Tesla's European sales decline was attributed to several factors, including outdated product offerings, reduced subsidies, increased competition, brand perception issues, market pressure, and controversies involving Elon Musk.
- Despite these challenges, Tesla is regaining momentum in Europe, especially in the UK, Spain, and the Netherlands, due to the availability of the new Model Y.
- In other news, sales of Tesla electric cars in Sweden, the Netherlands, Denmark, France, and Norway were lower in April 2025 compared to the previous year, and both Elon Musk and US Secretary of State Marco Rubio have criticized developments in Germany.
){kind=link}