by The decline of Tesla’s popularity
According to a UBS survey, the global appeal of the Tesla brand has significantly decreased. While the company’s cars were once considered cutting-edge and its CEO a genius, the situation has now changed. In the US, positive sentiment toward Tesla dropped from 38% to 29%, and in Europe, it fell from 20% to 15%. The company faces particularly serious challenges in China, where local manufacturers like BYD and Xiaomi offer more affordable and technologically advanced electric vehicles.
In China, only 14% of buyers consider Tesla a top brand, compared to 30% in 2020. UBS analysts note that Tesla is losing its leadership in technology, and in Europe, its image has been damaged by Elon Musk’s political activity.
“In China, we see fierce competition, and Tesla is no longer perceived as a technological leader,” UBS notes.
Competitors are advancing
New players like Xiaomi and BYD are actively taking market share from Tesla. Xiaomi’s first electric car, the SU7, has received positive reviews, while BYD has already surpassed Tesla in sales in some regions. In April 2024, BYD delivered 7,231 electric vehicles in Europe, a 169% increase compared to the previous year. Tesla’s sales, on the other hand, fell by 49%.
Overall, the European electric vehicle market continues to grow—in April, its share reached 17%, up from 13% in 2023. Tesla, once the undisputed leader, now faces fierce competition from both traditional automakers and new Chinese brands. This may force the company to reconsider its strategy, particularly in pricing and marketing.
