While Tesla’s chief executive officer strives to secure what would amount to the most substantial financial reward ever granted to a corporate leader, the company he heads finds itself in turbulent operational waters. The electric vehicle manufacturer’s once-unquestioned sales momentum has faltered, revealing widespread instability and uncertainty across multiple markets. Despite a recent uptick in U.S. sales during the last quarter, many analysts argue that the apparent recovery was less a reflection of renewed consumer enthusiasm and more the result of market timing. Specifically, they point to the impending expiration of the U.S. electric vehicle tax credit—a policy shift that likely encouraged a surge of buyers rushing to capitalize on financial incentives before they disappeared. Prior to that transient bounce, Tesla had reported a discouraging 13 percent collapse in its second-quarter U.S. sales, a troubling signal that left some industry observers predicting a continued slide in the months to follow.
Across the Atlantic, the situation appears no less precarious. According to a recent Reuters report, Tesla’s European performance has shown warning signs of even greater severity. In October, the company’s sales declined dramatically compared to the previous month, suggesting not a temporary stumble but a potential structural weakness within the region. The news agency cited auto registration data—widely regarded as a reliable indicator of actual sales—to illustrate the magnitude of this downturn. Registrations plummeted by 89 percent in Sweden, 86 percent in Denmark, 31 percent in Spain, and 50 percent in Norway. What makes these figures particularly stark is their contrast with the broader European market, where electric vehicle sales as a whole surged upward by an impressive 119 percent during that same timeframe. This divergence implies that Tesla’s difficulties are not reflective of waning demand for EVs in general, but rather of company-specific challenges, including brand sentiment and intensified competition. Notably, sales in both Sweden and the Netherlands have reportedly been on a steady downward trajectory for several consecutive months, underlining the persistence of the problem.
Yet amid these bleak statistics, a glimmer of optimism exists. Not every segment of the European market has turned its back on Tesla. Reuters also recorded modest areas of improvement, such as in France, where sales were up roughly 2.4 percent. Furthermore, the company’s October stumble came on the heels of a slight resurgence in September, when Tesla had experienced a brief, positive shift in European sales—with Norway and Spain marking small but notable areas of renewed growth. These fluctuations reveal that the brand’s European footprint, while undeniably strained, continues to demonstrate pockets of resilience that may provide a foundation for future recovery—if the company can stabilize its broader strategy.
Analysts, however, remain cautious. Reuters attributes Tesla’s struggles at least in part to competitive forces emanating from China, where a new generation of electric vehicle manufacturers has been flooding the market with technologically advanced and often more affordable models. These competitors have rapidly eroded Tesla’s positional advantage as the dominant EV innovator. At the same time, the company’s public image has been further complicated by backlash directed at CEO Elon Musk. His highly visible forays into political discourse—ranging from commentary on U.S. elections to provocative remarks about governance in the United Kingdom, including the suggestion that King Charles should abolish the British Parliament—have sparked controversy and alienated some consumers. Such political entanglements have reverberated negatively across countries where Tesla already faces sales challenges.
Meanwhile, Musk continues to pursue personal financial ambitions on an unprecedented scale. In an extraordinary display of executive compensation negotiation, he is striving to secure a pay package so immense that it could make him the world’s first trillionaire—a development as remarkable for its ambition as it is for its optics. Tesla’s board has argued that failing to approve the deal might prompt Musk to distance himself from the company, potentially even abandoning it entirely. Yet for many shareholders and market commentators, that hypothetical threat elicits skepticism; some question whether his departure would, in fact, constitute a genuine loss, considering the intense distractions and reputational volatility associated with his leadership style.
Back in the United States, Tesla’s year has been characterized by turbulence as well. Many analysts suspect that Musk’s increasingly partisan political alignment may have alienated a significant portion of the brand’s traditional customer base—particularly given that early Tesla adopters were, until recently, largely drawn from left-leaning, environmentally conscious demographics. Financially, the picture remains mixed: Tesla’s third-quarter results indicated a 12 percent year-over-year rise in revenue, a superficially encouraging figure that nonetheless masks a deeper problem. During the same period, the company’s operating income plummeted by nearly 40 percent, according to reporting from Teslerati. This discrepancy between revenue growth and declining profitability underscores the core dilemma Tesla now faces—balancing ambitious expansion with financial stability at a moment when both the company’s leadership and its market standing are under unprecedented scrutiny.
Sourse: https://gizmodo.com/teslas-sales-collapse-90-percent-2000680992
