JATO's motor vehicle data of the European market reveals Tesla is quickly losing market share as consumers now have a more extensive selection of all-electric vehicle models to choose from.
Overall motor vehicle registration in July slumped 4% year-over-year to 1,278,521; meanwhile, electric vehicle registrations boomed.
JATO said it was a "record-breaking month" for electric vehicle registrations with volumes up 131% year-over-year to 230,700. EVs accounted for 18% of total registrations in July, an increase of 10 percentage points over the 12 months.
"The rise in demand for EVs is strongly related to a wider offer that is finally including more affordable choices. The higher competition amongst brands is also pushing down prices." Felipe Munoz, a global analyst at JATO Dynamics, said.
Half of the vehicles sold in the month had hybrid engines, with demand jumping 89%. The hybrid versions of the Ford Puma and Fiat 500 were most sought after by consumers. Then plug-in hybrids accounted for 55,800 units, up over 365% over the year, with an increase due mainly to new model releases such as Mercedes A-class, BMW XC40, and BMW 3-Series.
As for pure electric vehicles, July registrations rose 43% over the last year to 53,200, with consumers now able to choose from 38 different models, as it appears pure electric vehicle models are flooding the market, crowding out Tesla:
"Tesla posted a 76% decline to 1050 units following shipping delays to Europe, as a consequence of production challenges in its Fremont, California plant," JATO's report said.
"In contrast to the general trend of increasing demand for electric cars, Tesla is losing ground this year in Europe. Some of this can be explain by issues relating to the production continuity in California, but also by high competition from brands that play as locals in Europe."
In a separate report, we quoted Wolf Richter via WolfStreet who showed Tesla's German sales over the seven-month period ending in July, fell from 6,816 in 2019 to 5,306. Shown below, the EV maker's market share plunged from 18.4% to 8.7%.
In Europe, as a whole, Tesla was dominated by Volkswagen Group, Renault, and Hyundai Group - however, does Tesla's stock, listed on the Nasdaq, reflect the EV maker's waning European demand?