KMII[Montblanc Moderator]
50281
Politics might play a small part…
But the bigger issue is that the Tesla package simply lost competitiveness. Their aftersales is abysmal here (in comparison to existing brands), the reliability is mediocre at best. While for many of the early adopters (especially Model S) the advantages that it had back then as an electric car made them overlook this, in a market where the product is at best par for the course and if one is less generous slowly falling behind, these become real issues.
I know the pivot and if it works, kudos to them - it is a sensible one on paper - if it can be executed. If it cannot, the company will have a real challenge.
Not by any stretch saying that the European car brands are viable entities as such. BMW probably has a shot at it, if the Neue Klasse flies and a real headache if it doesn’t. VW has the highest electric sales but is still slowly recovering from their indifferently executed (if theoretically correct) Cariad experiment. And the premium brands of the group (Audi and Porsche) are cratering. For Mercedes the new CLAs success will be instrumental in determining the future.
As for Chinese, they truly do it very well. Will they dominate the European market? Unlikely. But frankly speaking it doesn’t matter - they are on the cusp of achieving the real victory and that’s pushing out the transplants from China - where European, Japanese and American brands offloaded lots of volume and had some of the highest profitability levels over decades. Losing that is probably more painful than any damage that will happen in Europe over the coming years.