Overnight, the Tesla Model Y went from bestseller to outsider in the European market.
A year ago, the Tesla Model Y was the darling of Europe… and the world. It is the most popular car of 2023. Today, it has fallen to 18th place in sales. What happened to cause the star electric SUV to lose its crown?
Figures that make your head spin
The numbers are relentless. According to Dataforce, Model Y sales in Europe fell 49%, dropping the electric SUV from first to eighteenth place. With only 10,582 units sold in May 2024, Tesla’s SUV is far, far from its performance of the previous year. A fall that seems almost unreal for a vehicle that dominated the market just a few months ago.
But be careful, these numbers only tell part of the story. They must be placed in a broader context to understand what is really happening in the European automobile market.
The reasons for a fall
Several factors explain this spectacular decline. First, we are observing a general slowdown in the electric market, from which Tesla is not the only one to suffer. Then, the end of subsidies, particularly in Germany with the elimination of the ecological bonus, dealt a hard blow to sales of electric vehicles. Logistical problems, such as a dock workers’ strike in Sweden, have also disrupted Tesla deliveries. Finally, competition has increased considerably, with traditional manufacturers catching up with increasingly attractive alternatives. Without forgetting the Chinese offensive.
Ironically, it is Volkswagen that benefits the most from Tesla’s collapse. Its T-Roc, a thermal model introduced in 2017, becomes the provisional leader in European sales in May. With 19,748 units sold, an increase of 12%, the German crossover proves that thermal engines still have a bright future ahead of them.
The fall of the Model Y is full of lessons for the entire automotive industry. It reveals the still strong dependence of electric vehicles on government subsidies. She also highlights the importance for manufacturers not to put all their eggs in one basket.