Tag Archives: Tesla

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Tesla Struggles in Europe as Rivals Gain Ground Amid EV Boom

Tesla is facing a sharp downturn in Europe, with new car registrations falling 27.9 percent in May compared to the same month last year. The figures mark the fifth consecutive month of decline for the American electric vehicle (EV) giant, according to data from the European Automobile Manufacturers’ Association (ACEA).

The decline is particularly striking given the broader market trend: overall electric vehicle sales in Europe surged by 27.2 percent during the same period. While EV adoption is accelerating across the continent, Tesla’s dominance is clearly waning as competition intensifies and consumer sentiment shifts.

At the heart of the issue is the Model Y, once a market leader, which is now struggling to maintain its edge. Despite a recent refresh aimed at reviving interest in Tesla’s lineup, the model no longer commands the same loyalty or appeal. In May, the Model Y was still the top-selling electric car in Europe with 10,357 registrations — but this figure represents less than half of its former performance.

Meanwhile, rivals are closing in fast. Skoda’s newly launched electric SUV, the Elroq, recorded a strong debut with 9,222 registrations in May, underscoring the increasing pressure Tesla faces from both legacy automakers and new Chinese entrants.

Overall, the European car market grew modestly by 1.9 percent in May, with the most significant growth coming from plug-in hybrids and alternative fuel vehicles. Yet, Tesla’s market share fell to just 1.2 percent — a steep drop from 1.8 percent a year ago.

Industry analysts suggest multiple factors are behind Tesla’s slump. Price-sensitive consumers are increasingly turning to more affordable Chinese EVs. At the same time, some buyers are reportedly turning away from the brand in protest over the controversial public persona and political stances of Tesla CEO Elon Musk.

The company’s position in Europe is further complicated by ongoing trade tensions between the EU and China. As traditional manufacturers and emerging brands rapidly expand their EV portfolios, Tesla must now compete on more than just innovation — it must also win back public trust and offer better value in an increasingly crowded market.

While the EV revolution in Europe shows no signs of slowing, Tesla’s role as the segment leader is far from secure.

Source: Reuters

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Tesla Launches Robotaxi Service in Austin with Limited Availability

Tesla officially kicked off its highly anticipated robotaxi service in Austin on Sunday, June 22, marking a major milestone in the company’s push toward autonomous urban mobility. However, the launch came with significant limitations, raising questions about how close Tesla truly is to a driverless future.

Despite previous promises by Tesla CEO Elon Musk that the service would be fully autonomous, the current version still requires human oversight. Each robotaxi ride includes a “safety monitor”—a Tesla employee seated in the front passenger seat who can intervene in the event of a system failure or dangerous situation. The vehicles are also supported by remote drivers and, at times, escorted by additional staff.

Unlike other companies that deploy human supervisors only during the testing phase, Tesla’s approach blends commercial operation with safety monitoring, signaling that the service may still be in a transitional phase.

For now, the robotaxi service remains exclusive and invitation-only. Tesla has extended invitations primarily to hand-picked influencers and supporters of the brand, sparking criticism over the objectivity of early feedback. The company has not disclosed when, or if, the service will open to the broader public.

Tesla’s self-driving fleet currently consists of 10 to 20 modified Model Y vehicles. These vehicles operate only within a limited area of Austin that Tesla has heavily mapped. Operations are restricted to a specific timeframe—6 a.m. to midnight—and pause during adverse weather conditions. The vehicles also avoid highways, airports, and complicated intersections, which experts say are some of the most challenging scenarios for autonomous systems to handle.

The robotaxi program does not yet include the much-hyped Cybercab, Tesla’s next-generation autonomous vehicle concept unveiled last year. That vehicle isn’t expected to hit public roads until at least 2026.

While the rollout signals a step forward in Tesla’s long-term vision, critics say the company’s slow pace and reliance on human oversight contrast sharply with Musk’s bold claims about full autonomy. As competitors in the autonomous vehicle space—such as Waymo and Cruise—face their own growing pains, Tesla’s cautious approach in Austin may reflect both the promise and the persistent challenges of making robotaxis a real-world reality.

Source: Reuters

News

Tesla Hits Pause on Model Y and Cybertruck Production for Upgrades – Not Trouble

Tesla, long hailed as the unrivaled leader in the electric vehicle (EV) industry, is taking a short but significant breather at its Austin, Texas Gigafactory. The company has announced a temporary halt in production of its Model Y and Cybertruck vehicles, set to begin on June 30. But unlike what skeptics might assume, this pause isn’t due to sluggish sales or internal crises—it’s all about upgrades and efficiency.

According to a report shared with plant employees and later confirmed by multiple sources, the production break will last about a week. The goal? Routine maintenance and enhancements to production lines that will support higher output in the months ahead. While such pauses are commonplace across the automotive sector, the news was enough to jolt investors, with Tesla’s stock dipping nearly 4% following the announcement.

The Model Y, Tesla’s best-selling crossover, recently received a refresh, and signs point towards a potential spike in demand. This makes the upcoming production improvements timely, as Tesla positions itself to ramp up volume and meet consumer interest.

However, the story surrounding the Cybertruck is more complicated. Once hyped as a revolutionary entry into the EV pickup market, the Cybertruck’s rollout has been far from smooth. Production targets were significantly lowered earlier this year, and the Texas facility’s Cybertruck line is currently operating well below full capacity. Despite bold predictions from CEO Elon Musk—who once claimed Tesla could produce up to half a million Cybertrucks annually—only about 46,000 units have been built and sold since the vehicle’s debut in early 2024.

This gap between vision and reality has cast a shadow over the Cybertruck’s trajectory. While Tesla has not officially scaled back its ambitions, the reduced targets and sluggish output suggest the company may be tempering expectations behind the scenes.

For now, Tesla appears focused on refining its operations and preparing for what could be a critical second half of the year. Whether the Cybertruck will eventually find its footing remains to be seen, but the Model Y’s continued momentum may give the company the boost it needs to maintain its edge in an increasingly competitive EV landscape.

Source: Business Insider