Tesla's Market Share Drops in Western Europe While Berlin Factory Ramps Up Production

Over the past 12 months, electric vehicle (EV) sales in Western Europe have shown a clear trend: Tesla is losing market share. This shift is visible in recent sales charts and highlights increasing competition and changing consumer preferences in the region.

Interestingly, despite this regional decline, Tesla’s Berlin Gigafactory is showing an increase in production along with a strong order trend. At first glance, this appears contradictory — falling market share but rising output.

The explanation lies in Tesla’s export strategy. To offset the weakening demand in Europe, the Berlin plant is now exporting vehicles to 38 different countries. While European market volume may be softening, this broader distribution network helps balance production and sales.

However, in prioritizing profitability, Tesla must allocate vehicles to markets offering the highest price points. As a result, markets like Turkey, where demand could potentially reach up to 50,000 units this year, are not receiving sufficient supply. Despite the strong interest, limited allocation hinders Tesla’s full market potential in the country.

This raises a critical question: Would demand remain as high if prices increase in markets like Turkey? The answer remains uncertain for now.