By Alimat Aliyeva

The American electric vehicle (EV) manufacturer Tesla is facing a noticeable decline in global sales, as it struggles to maintain momentum in several key markets, Azernews reports.

In Europe, Tesla has suffered significant setbacks in Germany, France, and Sweden—countries traditionally seen as central to the continent’s automotive landscape. In the United States, the company’s image has also taken a hit, with CEO and majority shareholder Elon Musk’s increasingly controversial political activities—particularly his open support for former President Donald Trump—generating backlash among more progressive consumers.

Tesla’s previous success in China, the world’s largest market for electric vehicles, is also waning. While the company reported strong growth in China in 2023, sales have dropped sharply in 2024 due to intensifying competition from domestic manufacturers. Between January and April of this year, Tesla sold 163,338 vehicles in China. Although that figure remains substantial, it reflects a declining market share.

China’s EV and hybrid market is expanding rapidly, yet Tesla’s share is shrinking. The company, which ranked second in China’s EV sales in 2023 and third in early 2024, has now slipped to fifth place, holding just 4.6% of the market in the first four months of the year.

Tesla is not alone in its struggle. Foreign automakers in general are finding it increasingly difficult to compete in the highly dynamic Chinese EV sector. German giant Volkswagen, once the market leader, recently lost its top spot to Chinese automaker BYD, which now dominates with a broad lineup of competitively priced and technologically advanced electric models.

Analysts suggest Tesla’s performance is being affected not only by competition and politics, but also by its aging product lineup. While newer players like NIO, XPeng, and BYD are releasing frequent updates and innovative features, Tesla’s core models—such as the Model 3 and Model Y—have seen only minor refreshes. Industry observers believe that without significant innovation or the successful launch of next-generation models like the long-awaited Cybertruck and a rumored affordable EV, Tesla risks losing its edge in both domestic and international markets.