Tesla has made a high-profile entry into the Indian electric vehicle (EV) market, receiving over 600 orders since launching sales in mid-July. According to Bloomberg, the company plans to ship between 350 and 500 cars in 2024, with the first batch expected from Shanghai in early September.
India’s high tariffs mean Tesla’s Model Y, priced at around $70,000, targets a premium niche. The company is currently limiting deliveries to Mumbai, Delhi, Pune, and Gurugram, where it has established a physical presence. With EVs making up just 4% of India’s total car sales, Tesla aims to build traction among affluent, eco-conscious buyers.
European Sales Struggles Continue
While India offers Tesla a fresh opportunity, the company’s troubles in Europe have deepened. Sales data from August revealed steep year-on-year declines across multiple countries. Registrations in France dropped 47.3%, in Sweden 84%, in Denmark 42%, and in the Netherlands 50%. Italy also recorded a 4.4% fall.
Tesla attributed some of the slowdown to a production shift for a revamped Model Y, which had been Europe’s best-selling car in 2023. However, demand erosion appears to run deeper.
Backlash Against Musk Hurts Tesla
Competition from Chinese EV maker BYD and consumer backlash linked to CEO Elon Musk’s political views have intensified Tesla’s struggles. Musk’s outspoken support for Donald Trump and European far-right parties has alienated sections of the market, with buyers actively avoiding the brand.
Bright Spots in Southern Europe and Norway
Despite the downturn in much of Europe, Tesla managed to record gains in select markets. Registrations surged 161% in Spain and 28.7% in Portugal, while Norway, a key EV market, saw a 21.3% rise. These markets could provide some relief, but overall momentum remains shaky.
Outlook
Tesla’s India entry signals a bold step into an untapped but challenging market. Yet, its sharp decline in Europe highlights the risks posed by political controversies, shifting consumer sentiment, and fierce competition. How Tesla navigates this dual reality will determine its global standing in 2025.
