Tesla’s EU sales almost halve this year; Hyundai announces $21bn US investment to avoid tariffs – business live
Introduction: Tesla’s EU sales have almost halved this year
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
European car sales have dropped this year, with Tesla’s market share tumbling as buyers turn to other electrc vehicle makers.
New sales data just released show that Tesla’s market share in the European Union, the UK and the EFTA zone (Iceland, Liechtenstein, Norway and Switzerland) has shrunk to 1.8% so far this year, down from 2.8% in January and February 2024.
In the first two months of this year, Tesla has sold 26,619 vehicles in the EU + EFTA + UK region, down from 46,343 a year ago. That’s a fall of over 42%, data from the European Automobile Manufacturers Association (ACEA) shows.
The scale of the slide will reinforce speculation that Elon Musk’s role at the Trump White House is hurting Tesla. Protests at the company’s showroom have been rising in the US since Musk’s Department of Government Efficiency began slashing jobs across the Federal government.
Pam Bondi, the US attorney general, has condemned vandalism and damage to Tesla dealerships and charging stations as “domestic terrorism”.
In Britain, groups such as “Tesla Takedown UK” and “Everybody Hates Elon” group have been coordinating protests against the company – with some supporters motivated, it appears, by Musk’s endorsements for far-right politicians.
Despite that, Tesla’s sales in the UK actually rose by a fifth last month.
But in the European Union alone, Tesla’s sales have almost halved so far this year, down 49%, as the company misses out on a rise in sales of electric vehicles.
Analysts have suggested that Tesla’s relatively aging line-up may be counting against it.
Felipe Muñoz, a global analyst at Jato Dynamics, said yesterday:
“Tesla is experiencing a period of immense change. In addition to Elon Musk’s increasingly active role in politics and the increased competition it is facing within the EV market, the brand is phasing out the existing version of the Model Y – its bestselling vehicle – before it rolls out the update.
“Brands like Tesla, which have a relatively limited model lineup, are particularly vulnerable to registration declines when undertaking a model changeover.”
Jato’s data has also shown a slump in Tesla sales this year.
#UPDATE European sales of Tesla electric cars dropped 49% in January-February compared with the same period a year earlier, the ACEA manufacturers’ association says.
Ageing models are one factor behind the plunge so far this year, but e-vehicle clients may also be refusing to… pic.twitter.com/oJKQZHV8kC
— AFP News Agency (@AFP) March 25, 2025
While Tesla hits a tough patch, Chinese rival BYD is powering ahead. Yesterday it reported its annual sales had exceeded $100bn for the first time in 2024, overtaking Tesla.
Across the first two months of 2025, new battery-electric car sales in the EU grew by 28.4%, to 255,489 units, capturing 15.2% of total market share. ACEA reports that there were “robust double-digit gains” in Germany (+41%), Belgium (+38%), and the Netherlands (+25%), although they dipped by 1.3% in France.
In contrast, sales of petrol sales in the EU + EFTA + UK are down 21.9%.
And across all car types, new EU car registrations declined by 3% in February compared to the same period in 2024.
ACEA says:
Notably, the bloc’s major markets saw declines, with Italy (-6%), Germany (-4.6%), and France (-3.3%). Spain conversely recorded an 8.4% increase.
The agenda
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9am GMT: IFO survey of Germany’s economy in March
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11am GMT: CBI’s distributive sales survey of UK retail
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1pm GMT: S&P/Case-Shiller indx of US home prices
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2pm GMT: US home sales for February
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2pm GMT: US consumer confidence report
Key events
Shell has also revealed plans to ramp up cost savings and cut spending as it vowed to “deliver more value with less emissions”.
The oil giant told investors ahead of its capital market day event today that it would now look to strip out $5bn-$7bn (£3.9bn to £5.4bn) a year by the end of 2028, PA Media explains.
This is up from the previous aim for $2nm-$3bn by the end of 2025.
Shell will also lower its spending to $20bn to $22bn per year, over the next three years.
The FTSE 100 firm told shareholders it would look to boost investor returns through share buybacks and dividends payouts.
Other targets outlined included aims to grow its top-line production across the group’s upstream and integrated gas business by 1% a year over the next five years.
It added it would seek to grow sales of liquefied natural gas (LNG) by 4% to 5% a year through to 2030.
Anger as Shell CEO’s salary swells to ‘obscene’ £8.6m
Shell chief executive Wael Sawan’s pay package rose by 8.5% last year, to £8.6m, attracting criticism from environmental campaigners.
Sawan’s pay rose from £7.9m in 2023, Shell’s annual report shows this morning, due to increased bonus payments such as through its long-term incentive plan.
The increase came despite a fall in Shell’s profits last year – the oil major posted adjusted earnings of $23.7bn last year, down from $28.25bn in 2023.
Shell also handed $8.7bn to its shareholders through dividends last year, and also spent $13.9bn on share buybacks. It is also sticking with its goal of raising dividends by 4% per year.
Under Sawan’s leadership, Shell has been criticised for watering down its pledge to cut carbon emissions, and also cut hundreds of jobs at its low-carbon division.
Patrick Galey, investigations lead at Global Witness, says Sawan’s pay is ‘obscene’:
“After a year of unchartered climate extremes and huge energy bills, which are set to spike again in many countries this year, Wael Sawan’s obscene pay packet will feel like a slap in the face for millions.
“It’s maddening to know that Big Oil bosses like Sawan are raking it in, as they double down on the oil and gas that’s fuelling climate devastation, and continue to profit from an energy crisis that’s leaving so many of us poorer.”
“We shouldn’t have to witness another year of corporate greed at the expense of people and planet – it’s time governments held big oil firms like Shell to account. Instead of allowing oil giants to hand out billions to wealthy shareholders and shower their bosses with lavish pay checks, governments should be making them pay climate damages.”
Shares in Hyundai Motor Company have rallied by 3.3% today, and were up 7.5% at one stage, as investors welcomed its US investment.
Affiliate Kia Corp have gained 2%.
But Hyundai Steel’s share price has dropped – after an initial 5.4% jump, they have fallen almost 7%, as traders digest the plan to build a plant in Louisiana, creating 1,400 jobs.
Here’s a breakdown of Hyundai’s $21bn investment in the US, which will run from 2025 to 2028.
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$9bn to expand U.S. automobile production to 1.2 million units annually
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$6bn to enhance parts, logistics and steel business, increasing the localization of auto parts and strengthening supply chains
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$6bn to expand future industries and strengthen external partnerships and energy infrastructure, including EV charging
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Investment is expected to create more than 100,000 direct and indirect job opportunities by 2028, including 14,000 direct full-time jobs
Hyundai announces $21bn US expansion to avoid tariffs
Elsewhere in the auto industry, Hyundai has unveiled plans to make a record $21bn investment in the US, to protect itself from the threat of tariffs from President Donald Trump.
Hyundai plans to spend about $21bn in the US by 2028 to increase vehicle production, including a new $5.8bn Hyundai Steel plant in Louisiana that will produce over 2.7 million metric tons of steel annually
Chairman Chung Euisun said the new steel works will strengthen the steel supply chain in the US. He also pledged the company would also purchase $3bn of US liquefied natural gas, explaining:
“It’s deepening our partnership with the United States and reinforcing our shared vision for American industrial leadership.”
Trump has hailed the news as vindication of his strategy of pressuring foreign manufacturers to create American jobs, calling it a “clear demonstration that tariffs very strongly work.”
The US president told an event at the White House:
“We’re delighted to report that Hyundai is announcing a major $5.8bn investment in American manufacturing.
Money is pouring in and we want to keep it that way.”
Introduction: Tesla’s EU sales have almost halved this year
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
European car sales have dropped this year, with Tesla’s market share tumbling as buyers turn to other electrc vehicle makers.
New sales data just released show that Tesla’s market share in the European Union, the UK and the EFTA zone (Iceland, Liechtenstein, Norway and Switzerland) has shrunk to 1.8% so far this year, down from 2.8% in January and February 2024.
In the first two months of this year, Tesla has sold 26,619 vehicles in the EU + EFTA + UK region, down from 46,343 a year ago. That’s a fall of over 42%, data from the European Automobile Manufacturers Association (ACEA) shows.
The scale of the slide will reinforce speculation that Elon Musk’s role at the Trump White House is hurting Tesla. Protests at the company’s showroom have been rising in the US since Musk’s Department of Government Efficiency began slashing jobs across the Federal government.
Pam Bondi, the US attorney general, has condemned vandalism and damage to Tesla dealerships and charging stations as “domestic terrorism”.
In Britain, groups such as “Tesla Takedown UK” and “Everybody Hates Elon” group have been coordinating protests against the company – with some supporters motivated, it appears, by Musk’s endorsements for far-right politicians.
Despite that, Tesla’s sales in the UK actually rose by a fifth last month.
But in the European Union alone, Tesla’s sales have almost halved so far this year, down 49%, as the company misses out on a rise in sales of electric vehicles.
Analysts have suggested that Tesla’s relatively aging line-up may be counting against it.
Felipe Muñoz, a global analyst at Jato Dynamics, said yesterday:
“Tesla is experiencing a period of immense change. In addition to Elon Musk’s increasingly active role in politics and the increased competition it is facing within the EV market, the brand is phasing out the existing version of the Model Y – its bestselling vehicle – before it rolls out the update.
“Brands like Tesla, which have a relatively limited model lineup, are particularly vulnerable to registration declines when undertaking a model changeover.”
Jato’s data has also shown a slump in Tesla sales this year.
#UPDATE European sales of Tesla electric cars dropped 49% in January-February compared with the same period a year earlier, the ACEA manufacturers’ association says.
Ageing models are one factor behind the plunge so far this year, but e-vehicle clients may also be refusing to… pic.twitter.com/oJKQZHV8kC
— AFP News Agency (@AFP) March 25, 2025
While Tesla hits a tough patch, Chinese rival BYD is powering ahead. Yesterday it reported its annual sales had exceeded $100bn for the first time in 2024, overtaking Tesla.
Across the first two months of 2025, new battery-electric car sales in the EU grew by 28.4%, to 255,489 units, capturing 15.2% of total market share. ACEA reports that there were “robust double-digit gains” in Germany (+41%), Belgium (+38%), and the Netherlands (+25%), although they dipped by 1.3% in France.
In contrast, sales of petrol sales in the EU + EFTA + UK are down 21.9%.
And across all car types, new EU car registrations declined by 3% in February compared to the same period in 2024.
ACEA says:
Notably, the bloc’s major markets saw declines, with Italy (-6%), Germany (-4.6%), and France (-3.3%). Spain conversely recorded an 8.4% increase.
The agenda
-
9am GMT: IFO survey of Germany’s economy in March
-
11am GMT: CBI’s distributive sales survey of UK retail
-
1pm GMT: S&P/Case-Shiller indx of US home prices
-
2pm GMT: US home sales for February
-
2pm GMT: US consumer confidence report
