Tesla: -43.2% in Sales in August 2024, the Collapse Continues

In a completely collapsing electric car market in the European Union, Tesla is the manufacturer most affected in August 2024.

Should the month of August be considered an anomaly in what has been a rather positive year for 2024 so far? At the European level, sales dropped by 18.3%, across all types of motors, as revealed by the European Automobile Manufacturers Association (ACEA). Over the first eight months of the year, there is still a rise of about 1.4%, with over 7.2 million new vehicles sold already. In France, the trend remains unfortunately negative, at -0.5%, a sign of a serious underlying economic crisis and a loss of direction among consumers. What should one buy or rent, given that the rules are constantly changing?

For instance, the electric car sector is the hardest hit. Year-on-year, the decline amounts to -8% in terms of European market share, dropping from 21% to 14%! In contrast, gasoline cars maintain their momentum, while non-rechargeable hybrids gain ground due to their ease of use.

Tesla takes a heavy hit

In August 2024, the decline in the electric car market compared to August 2023 stands at -43.9%, with 92,627 units sold compared to 165,204 a year earlier. And in this slump, one manufacturer in particular is affected: Tesla. With a -43.2% drop in sales, its dynamics mirror that of the segment.

In reality, Tesla is still dictating the pace of European sales at a time when customers are hesitating to make purchases. Everyone is waiting for the arrival of the refreshed Model Y and therefore no longer biting at the bait of massive discounts on the current version. The American manufacturer must act quickly, as some markets are literally collapsing, with for example a -68.8% in Germany (despite permanent discounts of 6,000 euros). Indeed, the disappearance of the ecological bonus across the Rhine has an effect, but the Germans’ very eco-friendly approach is no longer sufficient. In France, the drop is -33.1%, a smaller figure thanks to the boost from the ecological bonus.

When a business contracts by nearly half, danger is imminent. Tesla is increasing its promotional offers in China, and this seems to be working for them. In the United States, where the political debate is highly divisive, sales are also declining, with buyers turning away from Tesla to mark their disagreement with the extreme positions of Elon Musk. And in Europe, it is a complete freefall. Tesla sold only 19,088 cars in August 2024, compared to 12,000 for the Geely group, whose rise, despite increasing tariffs, continues to accelerate. Meanwhile, BMW confirms its good shape with 15,547 electric cars sold, resulting in a market share climbing from 8.4% to 12.4% in one year. Finally, the leading seller of decarbonized vehicles in Europe remains the Volkswagen group, with 28,083 units.

Tesla is doing poorly, very poorly, yet the orchestra continues to play while the ship sinks. The coming months could be decisive in the management of the company, as shareholders increasingly desire the departure of the South African billionaire with his devastating management. And the plans for Robotaxi are unlikely to reverse the trend.

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