If the lights are generally green for Tesla with sales and profits on the rise, the fact remains that the American brand’s market share is down in Europe. From now on, it is the Volkswagen group which dominates the debates in terms of electric vehicles.
Tesla had no trouble establishing itself as the leader of the electric car in Europe since competition was almost non-existent outside of the Renault Zoe and Nissan Leaf. Customers who wanted a family vehicle with “premium” and emission-free services therefore had little choice: it was Tesla, and nothing else.. But the deal is starting to change since the competition is getting organized, to such an extent that it is now stealing market share from Tesla. Logic !
Tesla loses ground but makes big profits
Just over $18 billion in revenue and $3.3 billion in net profit (doubled from the same period of 2021), Tesla had a record first quarter. 310,000 Teslas were registered worldwide between January 1 and March 31. And all this without advertising on traditional communication channels! By performing a brief linear calculation, Tesla would therefore be around 1.2 million in sales in 2022, in line with the forecasts made by analysts at the end of last year. Obviously, the recent price increase of the cheapest Model 3 could undermine this dynamic. But for Tesla, beyond the shortages that could affect production, it is above all the competing manufacturers who will be the grains of sand seizing up the gears.
Volkswagen ahead of Tesla in Europe
In 2019, Tesla had 31.1% market share in electric vehicles in Europe. But in barely two years, the situation has quickly changed: The “old” Renault and Nissan have gradually lost ground, Nissan even dropping from 20% of shares to only 3%! At the same time, the Volkswagen group is gaining momentum: from 12.5% in 2018, the German giant has increased to 25% in 2021, nibbling shares from Tesla, which has risen to third place behind Stellantis. Obviously, Tesla is alone against the multiple brands of the groups mentioned, but this gives grain to grind to rivals. At the presentation of the new i7, Sales Manager Pieter Nota did not mince his words: “Tesla had a unique selling proposition for a while…it’s over!” he let go. For the time being, success will smile especially on the one who best overcomes shortages of all kinds. And in terms of electrified cars, the Koreans seem particularly well armed, because of their proximity to the major manufacturers of batteries and semiconductors.