Tesla a tale of 2 regions - above average in China, weak in EU and US

China weekly vehicle insurance data from China showed 15,600 insured registrations for Tesla vehicles in the week of Sep 9-15, CnEVPost reported, citing data from Li Auto. Commenting on the data, fund manager Gary Black said after 11 weeks into the quarter, with only two weeks left, Tesla's China third-quarter registrations are on track for their best quarter ever. Quarter-to-date period, the number was up 20% year-over-year and 26% higher than in the first quarter, he added.

On the flipside, data released by European Automobile Manufacturers Association (ACEA) showed that Tesla volumes in Europe dropped 36% year-over-year to 21,701 vehicles in Aug. "The electric car market is now on a continual downward trajectory," the ACEA said in a statement.

Germany has suffered a "spectacular" drop in electric car sales as the European Union faces growing calls to delay its net zero vehicle targets.

In France, the EU's second largest market for battery electric vehicles behind Germany, deliveries fell by 33% to 13,143.

ACEA said "the spectacular drop" in both countries meant that only 92,627 battery electric vehicles were registered across Europe last month, a fall of 43.9% compared to a year earlier. This drove a wider 18% drop in new car sales across the EU.

The collapse in EV sales comes amid concerns about their range, high prices and the lack of charging infrastructure across the EU.

Felipe Munoz, a global automotive analyst at JATO Dynamics, said: "The reality is that whether you look at business or private, electric vehicles do not convince yet."

There are concerns about demand for EVs among British drivers too. Separate data showed that the growth rate of EV sales in the UK had dramatically slowed.

Some 213,500 EVs were sold in the first eight months of 2024, up by 10.5% compared to the previous year. That compared to annual growth of 40.5% over the same period in 2023, according to the Society of Motor Manufacturers & Traders (SMMT).

Mike Hawes, head of the SMMT, said earlier this month: "Encouraging a mass market shift to EVs remains a challenge and urgent action must be taken to help buyers overcome affordability issues and concerns about chargepoint provision."

He predicted there will be "more problems" for Germany in the coming months amid waning enthusiasm for EVs among corporate fleets.

Mr Munoz said: "I don't think we will see growth. I'm not saying that we will continue to see these big drops as we just saw in Aug because sooner or later measures will be taken by the government because of strong lobbying from carmarkers in Germany."

Earlier this month Volkswagen warned it may have to close a factory in its home market in the face of slumping sales. The car maker has also scrapped a decades-old promise to protect workers' jobs, with fears as many as 15,000 roles could be at risk.

The EV sales crisis prompted the ACEA to call for "urgent action" to address new EU net zero car sales rules that will leave European electric car manufacturers at risk of hefty fines.

The new rules require all new European cars to produce no more than 93.6g of CO2 per kilometre. Brands will be fined €95 for each gram of CO2 per kilometre over the limit, multiplied by the number of cars sold.

The ACEA said the "continual downward trajectory" of EV sales in the bloc meant manufacturers would be at risk of multi-billion euro fines and said the new rules needed a rethink. It warned that demand for EVs was still well below the level needed for the EU's new vehicle emissions rules to work effectively.

"We are missing crucial conditions to reach the necessary boost in production and adoption of zero-emission vehicles: charging and hydrogen refilling infrastructure, as well as a competitive manufacturing environment, affordable green energy, purchase and tax incentives, and a secure supply of raw materials, hydrogen and batteries," the ACEA said.

The Brussels-based industry body said that 902,011 battery-electric cars were registered from Jan to Aug, representing just 12.6% of the market.

The ACEA urged the European Union to delay new carbon emissions targets and instead take "urgent and meaningful action" to reverse the sales decline.

Top carmakers including Volkswagen, BMW and Renault have already suggested pushing back the targets, which would see companies fined for failing to comply.

Meanwhile, Italy urged the EU to pause its "absurd" plans to ban petrol cars by 2035 amid concerns the policy risks triggering the automotive industry's collapse.