Tesla's Musk Takes Control of European Operations as Deliveries Surge, Stock Falls
Elon Musk, the CEO of Tesla, has taken over the company's European operations following Omead Afshar's departure, now directly overseeing the Gruenheide factory near Berlin. Despite recent setbacks, Tesla's electric vehicle deliveries surged by 7.4 percent year-on-year in the last quarter.
Tesla's recent sales boost was likely driven by the final sprint of US subsidies for electric vehicle purchases, with the $7,500 tax credit ending in late September. However, the company's sales in Europe have been declining, with a 36.6 percent year-on-year drop in August and a market share of 1.2 percent. This decline led to a 4.5 percent fall in Tesla's stock price.
In the last quarter, Tesla built around 447,410 cars of all models, a decrease of approximately 4.8 percent from the previous year. The futuristic Cybertruck has not been a significant sales success. Controversies surrounding Elon Musk's political activities and increased competition in the electric vehicle market have also contributed to earlier sales declines. Despite these challenges, Tesla's Berlin-Brandenburg plant produced its 500,000th Model Y, strengthening European production.
Elon Musk expects challenging quarters ahead for Tesla, despite the recent sales boost. The company's model range has seen little aesthetic change, and many US buyers are opting for hybrid or internal combustion engine vehicles. Musk has been focusing on the future of Tesla in robotaxis and humanoid robots, rather than car sales, as the company navigates the competitive electric vehicle market.
