After a great Q3, Tesla sees double-digit declines all over Europe

Tesla's shareholders are set to cast their votes tomorrow on a proposal to grant Elon Musk a larger stake in the company, a move aimed at keeping him focused on the electric vehicle market. However, recent trends may give investors pause, particularly Musk's apparent fixation on the UK, which he seems to misinterpret as a fantastical realm. The pressing concern for shareholders is Tesla's sales performance last month. Although the company only releases sales data quarterly without regional breakdowns, some insights can be gathered from monthly new car registration statistics in various countries. Alarming figures for October reveal a dramatic year-on-year decline in sales across Europe, with staggering drops reported in multiple nations. Sweden experienced a jaw-dropping 89% decrease, followed by Denmark at 86%, Belgium at 69%, and Finland at 68%. Other countries like Austria, Switzerland, and Germany also saw significant declines, with losses ranging from 50% to 69%. In a stark contrast, France managed a slight uptick of 2% in sales, driven by a new subsidy initiative. Meanwhile, in China, the situation is somewhat better, with sales down by 9.9% in October compared to the previous year. Despite achieving record sales in Q3, Tesla is grappling with shrinking profit margins, rising costs, and a worrisome trend of diminishing profits. Both Europe and China are witnessing an influx of competition in the electric vehicle sector, with traditional automakers and new startups vying for consumer attention. Furthermore, Tesla's limited range of offerings, primarily the Models 3 and Y, are beginning to feel outdated, even with recent updates aimed at rejuvenating their appeal.