Tesla sales in Europe have plummeted after countries such as Germany and France cut subsidies to electric vehicles.
In the first four month of the year, sales at the Western leader in electric cars dropped by 8pc throughout Europe and the UK.
Tesla’s sales grew by 78pc during the same time period last year.
Sales of EVs were up 14.4pc for all brands, despite the gloomy numbers.
According to figures released by the European Automobile Manufacturers Association, Tesla sold 100.124 cars from January through the end of April in this year. This is down from the 108.737 vehicles it sold during the same time period in 2023.
Separately published figures suggest that 13,120 of them were sold in the UK – down from 15,168 last time.
Tesla has warned investors that sales will be “significantly lower” in 2024, as it battles with higher interest rates and fierce competition in China.
Tesla sold only 13,951 cars in Europe in April. This was its lowest monthly sales total since January 2023.
The arrival of Chinese electric vehicles , which are cheaper than their western counterparts, is expected to disrupt the market.
Some have called for Europe to impose import tariffs on Chinese brands, just as the US did. This is due to concerns over state subsidies given to these brands by Beijing.
Carlos Tavares – the CEO of Stellantis – the auto giant that owns Vauxhall Fiat Citroen and Fiat – rebuffed these calls on Wednesday.
Tavares said that imposing tariffs on countries would “be a major trap” and that it would prevent Western automakers from changing their products to compete with Chinese competitors.
He said: “There are social consequences when you try to fight the competition and absorb 30pc in cost competitiveness advantage for the Chinese.”
“But the government, the governments of Europe don’t want that reality to be faced right now.
If we allow the Chinese carmakers to grow, it is obvious that there will be an overcapacity unless we fight this competition.
Several European governments have reduced or cut subsidies recently for EVs.
France, Ireland, and other countries have reduced the amount of assistance drivers can receive.
The UK has dropped a grant to encourage EV purchases by 2022.
The car industry lobby groups criticised these moves, arguing that the support was removed at the worst time possible.
According to the mandate, carmakers must sell at least 22pc electric vehicles this year. By 2030, the target will gradually increase to 80pc before 2035, when new petrol and diesel cars will be banned.
In 2035, similar rules prohibiting cars with tailpipe emission will come into effect in Europe. These regulations will be preceded by stricter emissions requirements.
The slowdown in EVs sales has prompted some manufacturers, including Mercedes-Benz and Volkswagen, to rethink product plans. Some have decided to extend production of hybrids.
Last year at this time, EV sales grew by nearly 50%.
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