Tesla CEO Elon Musk has pledged to return full-time to Tesla, SpaceX, and X, as the company faces declining sales in Europe. Data from the European Automobile Manufacturers Association (ACEA) shows Tesla’s electric vehicle registrations in Europe fell 49% year-on-year in April to 14,228 units. This marks Tesla’s fourth straight month of declining sales in the region.
In contrast, overall electric vehicle registrations across Europe—including the UK and the European Free Trade Association—rose by 34.1% in April. While total vehicle registrations fell slightly by 0.3%, Tesla’s sales decline stands out amid growth by competitors like Volkswagen, BMW, and China’s BYD.
New Model Y Facelift Fails to Boost Sales
April’s sales figures included Tesla’s latest facelift of the Model Y, its best-selling vehicle. Despite the updated features, demand remained weak, further highlighting challenges for Tesla in Europe’s competitive EV market.
Market and Investor Reaction
Despite the poor sales data, Tesla’s shares rose nearly 7% after former U.S. President Donald Trump dropped tariff threats against the European Union, easing some trade concerns.
Tesla recently reported a sales decline in the first quarter, marking its worst quarterly deliveries since mid-2022.
Musk’s Return to Focus on Tesla and Technology
Elon Musk’s return-to-the-office (RTO) announcement came via his social media platform X, where he said he is “back to working 24/7” and sleeping in conference rooms, servers, and factory spaces. Musk emphasized his focus on Tesla, X/xAI, and upcoming SpaceX projects, including the critical Starship launch scheduled for next week.
Tesla is also gearing up for a significant robotaxi trial in Austin, Texas, set to begin in late July. The company’s future strategy depends heavily on autonomous driving and launching self-driving taxi services, known as Cybercabs, planned for 2026. Additionally, Tesla expects to release its long-awaited, more affordable electric car model in the first half of this year.
Musk’s Reduced Washington Role
Since April, Musk has hinted at cutting back his involvement in Washington, D.C., where he nominally heads the Department of Government Efficiency (DOGE). He told investors during Tesla’s first-quarter earnings call that he would significantly reduce his time dedicated to DOGE starting in May.
Last week, Musk confirmed his commitment to Tesla in interviews with Bloomberg and CNBC. He said he plans to remain Tesla’s CEO for at least the next five years.
Investor Opinions Mixed on Musk’s Return
Investors welcomed Musk’s renewed focus but remain cautious about Tesla’s sales outlook. Gary Black, managing partner at Future Fund and Tesla investor, commented on X that Musk’s return “is not a big deal” and unlikely to reverse the declining delivery trend.
Black also expressed concerns that Tesla’s upcoming affordable model, expected in Q3, might be a “scaled-down” version of the Model 3 or Model Y, without a new design. This, he believes, will limit Tesla’s ability to expand its total addressable market.
