Source: Zhitong Finance

$Tesla (TSLA.US)$The second quarter had a lackluster start in the European market, but CEO Musk expects the European market to perform much better than the first few months of this year.

The European Automobile Manufacturers Association said on Wednesday that the automaker registered only 13,951 cars in April, down 2.3% year-on-year, the worst record since January 2023. In contrast, electric vehicles grew 14% across the industry during the month.

Tesla also reported that shipments from its Shanghai plant declined during the month, in stark contrast to the strong growth in China's broader plug-in vehicle industry. On April 23, Musk told investors that the company expected to recover from several issues affecting production in the first quarter, including the suspension of Red Sea shipping and the arson shutdown of the German factory.

“We think the second quarter will be much better,” Musk said during Tesla's first quarter earnings call.

Countries including Germany and Sweden have stopped or removed electric vehicle subsidies in recent months, hampering sales growth in the European market. Meanwhile, manufacturers, including Volkswagen and Mercedes-Benz, have been reconsidering their product plans. Among them, Volkswagen is preparing to produce more plug-in hybrids, while Mercedes will continue to produce fuel vehicles until the 2030s.

Although most brands in Germany, Europe's biggest car market, are struggling to cope with the cancellation of incentives, Tesla's performance last month lagged behind its peers. In Germany, overall electric vehicle registrations remained flat, while Tesla's sales plummeted by 32%.

In the UK, Tesla registrations also fell 25% in April and fell 14% in the first four months of this year.

editor/tolk