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Tesla is experiencing a significant downturn in sales in Germany, one of its key markets in Europe. In November, sales dropped by 20%. Overall, Tesla’s sales have decreased by nearly 50% compared to the same period last year. This decline is part of a broader trend of reduced sales across the continent.
Sales Decline in Europe
Europe is currently Tesla’s third-largest market. However, CEO Elon Musk has described it as the company’s “weakest market.” He attributes this weakness largely to the delayed regulatory approval for Tesla’s Full Self-Driving (FSD) technology.
Challenges in Adoption
Despite FSD being permitted in certain areas, the adoption rate remains low. On the latest earnings call, CFO Vaibhav Taneja disclosed that only 12% of Tesla’s global fleet opts to pay for the FSD feature.
Key Statistics
- 20% decrease in November sales in Germany
- Nearly 50% decline in sales compared to the previous year
- Only 12% of the global fleet subscribing to Full Self-Driving (FSD)
This situation poses significant challenges for Tesla as it seeks to strengthen its presence in the European market while addressing the low adoption rates of its advanced driving technologies.
