TLDR
- Austin robotaxi fleet will double in December after June service launch
- October European sales fell 48.5% while regional EV market rose 26%
- 2025 global deliveries forecast down 7% following 1% drop in 2024
- Chinese automaker BYD sold double Tesla’s volume in Europe last month
- New Arizona ride-hailing permit expands service beyond two current cities
Tesla’s dual strategy creates conflicting narratives. Elon Musk accelerates autonomous vehicle deployment while core automotive sales weaken worldwide.
The company will double its Austin robotaxi fleet next month, Musk announced Tuesday. Service began in Austin last June and currently runs in two locations. All vehicles still require safety monitors.
Tesla now holds permits for ride-hailing in Arizona, expanding beyond Austin and San Francisco Bay Area operations.
Musk stated in October that robotaxis would run without safety drivers across much of Austin by year’s end. He projected operations in eight to ten cities by December. July comments suggested coverage for half the U.S. population by late 2025.
Tesla hasn’t disclosed its total robotaxi count.
European Sales Hit Hard
October European sales dropped 48.5% year-over-year for Tesla. The broader EV sector grew 26% in the same timeframe.
Tesla’s 2025 European sales are down 30% year-to-date. BYD moved 17,470 units in October across Europe, over twice Tesla’s sales.
Volkswagen reported 78.2% EV sales growth through September, hitting 522,600 units. That’s three times Tesla’s European volume.
The company sells two mainstream models in Europe: Model 3 and Model Y. Over 150 electric models compete in the UK market alone. Fifty additional EV models launch next year with no Tesla entries.
Tesla released lower-priced Model 3 and Model Y versions, cutting approximately $5,000 from previous pricing.
Asia-Pacific and North America Trends
Chinese market deliveries reached a three-year low in October, down 35.8%. Tesla’s China sales declined 8.4% through October on a year-to-date basis.
Xiaomi’s YU7 competes directly with Model Y since its June debut. Traditional Chinese manufacturers like Chery also challenge Tesla’s position.
September U.S. sales surged 18% as customers rushed to claim a $7,500 tax credit before its September 30 cutoff. October sales dropped 24%.
Visible Alpha forecasts 7% global delivery decline for 2025. This continues from 2024’s 1% decrease.
The Model Y ranked as the world’s top-selling vehicle in 2023. Tesla has fallen in rankings as rivals introduced better EVs at lower prices.
Growth Outlook and Strategic Shift
Late 2024 projections from Musk estimated 20-30% sales growth for 2025. Tesla withdrew that forecast and now links growth to economic conditions and autonomy rollout speed.
Company focus shifted toward robotaxis and humanoid robots. No new consumer vehicle model appears in near-term plans.
Musk’s pay package stipulates 1.2 million average annual vehicle sales over ten years. This target sits roughly 500,000 units below 2024 sales figures.
The robotaxi sector recovered after multiple setbacks including company failures, regulatory hurdles, and federal investigations. Tesla, Waymo, and Zoox are all accelerating deployment.
Tesla’s European troubles intensified after Musk praised far-right political figures, triggering regional protests. Despite Musk quieting his political commentary recently, European sales haven’t recovered.
More than a dozen European electric models sell under $30,000 with additional launches planned. Chinese brands enter Europe with diverse offerings from EVs to hybrids.
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