New data shows Tesla’s (TSLA) sales declines that were seen abroad have hit the US market as well.
S&P Global Mobility (via Automotive News) reports that Tesla EV registrations (a proxy for sales) for April dropped 16% to 39,913 registrations. Meanwhile, General Motors’ (GM) Chevrolet saw a 215% jump in EV registrations to finish in the second spot, with Ford (F) slipping to third place as sales fell 33%.
Overall EV registrations fell 4.4% in April compared to a year ago, the first year-over-year decline since February 2024, per S&P Global Mobility data. EV market share in April fell to 6.6% from 7.4% a year ago.
Every Tesla electric vehicle model saw a sales drop in April except for the Model 3 sedan. Following Q2 earnings, Tesla said the switchover to the new Model Y SUV led to a production shutdown at its factories around the globe, hurting production.
Nevertheless, Tesla’s sales drop in April reflects a recent worrying pattern for the company seen in European sales data. Per the European Automobile Manufacturers Association (ACEA), Tesla EV registrations in Europe fell a whopping 49% in April compared to a year ago, to 14,228.
Earlier this month, data from France’s PFA national auto lobby reported new Tesla registrations dropped 67% in May to 721 units, with overall sales down 47% year to date. Mobility Sweden reported Tesla EV registrations tumbled 53.7% to 503 units in the country in May from a year earlier.
Demand weakness in the EU and recent protests at US Tesla showrooms follow CEO Elon Musk’s foray into politics, causing some Tesla owners to become alienated by Musk, specifically by his right-leaning tendencies, leadership of the Department of Government Efficiency (DOGE), and outward support of President Trump.
In the US, concerns over the loss of federal EV tax credits (among other issues) led CEO Elon Musk to wage a surprising war of words with President Trump, which has only recently begun to cool off.
While tensions appear to be waning, Musk and Tesla now have to deal with the potential brand hit Tesla took because of Musk’s support for Trump and now backlash from the right due to his attack on the Trump-backed budget bill.
Tesla’s brand issues do not include the actual competitive threats Tesla is facing from legacy automakers too. Chevrolet, with its Equinox EV and Blazer EV, is taking market share, and GM’s Cadillac brand has popular luxury EVs like the Lyriq and Optiq, which boosted registrations by 104% compared to a year ago in April.
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BMW (BMW.DE) is also seeing gains on the higher end, though Ford and Hyundai (HYMTF) saw sales drops in the mainstream and premium segments.
This could be, in part, why Tesla late Thursday night revealed refreshed versions of its higher-end Model S sedan and Model X SUV to better compete in the luxury segment. New styling, improved range, and improved suspension tuning are among the major changes for both vehicles.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
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