New vehicle registrations for Tesla Inc. in the European Union (EU) continue to decline, putting the company’s global EV delivery target for the year at risk. According to data from the European Automobile Manufacturers’ Association (ACEA), Tesla had 11,088 vehicle registrations in the EU in October, marking a drop of 21% from the corresponding period last year.
EU EV Market Overview
Despite the decline in Tesla registrations, battery electric vehicle (BEV) registrations in the EU rose 2.4% in October to 124,907 units, driven by growing popularity in Denmark and the Netherlands. However, Tesla’s struggles in the EU are evident, with its new vehicle registrations falling 11% year-on-year to 192,661 units from January through October.
Global Delivery Target Under Threat
To meet its global EV delivery target for 2023, Tesla needs to deliver at least 514,926 vehicles in the three months through the end of December. This target seems ambitious, as Tesla has never managed to deliver over 500,000 EVs in a quarter to date.
Quarterly Deliveries
In the third quarter, Tesla reported deliveries of 462,890 vehicles, up 6.4% year-over-year and 4.3% quarter-over-quarter. However, deliveries fell 8.5% year-on-year in the first quarter and by 4.8% in the second quarter.
Analyst Insights
According to Tesla researcher Troy Teslike, the low sales in Europe are likely to impact Tesla’s aim to prevent a drop in yearly deliveries. “Tesla is trying to reach 514,925 deliveries this quarter to avoid a drop in yearly totals compared to the 1,808,581 units delivered last year. However, even if they sell out all their inventory in the US, it’s still going to be tough to hit that number because sales in Europe are down too.”
Stock Performance
Tesla’s stock fell 1.2% on Wednesday to close at $342.03 and declined over 1% in premarket trading on Thursday. Year-to-date, the stock is up 37.7%.
Conclusion
Tesla’s struggles in the EU threaten its global EV delivery target for 2023. With the company’s ambitious target of delivering over 500,000 EVs in a quarter, investors will be closely watching Tesla’s performance in the coming months.