Zoë Dahse
Tesla has put a halt to expansion plans in Valencia after a drop in two-thirds of its European sales. This comes after a promising deal had been signed with the regional government in June 2023, which will now not come to fruition.
This decision leaves Valencia with less industrial means, and comes as a blow to the region’s economy, as many jobs previously promised will now not be made possible.
In Germany, Tesla’s leading European market, the company sold only 1,110 units in July, reflecting a 55% drop in sales from last year.
Elsewhere, in the UK Tesla has seen a 60% fall in sales, from 2,462 units last year to 987 this year. This comes despite Tesla’s dominance with its Gigafactory in Berlin, Germany, which is the company’s first manufacturing facility in Europe.
Read more: Elon Musk’s Tesla revealed as car maker interested in opening factory in Spain’s Valencia area
Competitors such as Volkswagen have, in the meantime, capitalised on the waning demand of Tesla. The German group’s Gigafactory in Valencia’s Sagunto continues to be under construction, with production scheduled for 2026 and thousands of jobs lined up.
Tesla has in recent months become mired in a series of controversies under Elon Musk’s helm, and stands to increasingly lose its previous dominance in the world of electric vehicles.
Click here to read more Spain News from The Olive Press.
