Tesla is having a tough time in Europe. One of the main reasons is CEO Elon Musk’s political moves, including his support for Donald Trump, which have caused problems for the company across the region. The only good news for Tesla in Europe has been strong sales in Turkey.
Big Sales Growth in Turkey
Turkey has become one of Tesla’s fastest-growing markets. In June, Tesla sold 7,235 cars in the country — a huge 171% increase compared to before. The Model Y became the most popular electric vehicle (EV) in Turkey. In contrast, Tesla’s sales in the rest of Europe fell by 23% during the same time.
Elon Musk even mentioned Turkey during Tesla’s recent earnings call, highlighting its importance.
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New Tax Could Hurt Tesla
But this growth in Turkey might not last. The Turkish government has suddenly raised the special tax on electric vehicles in the lowest price range — from 10% to 25%. This new tax includes Tesla’s best-selling Model Y.
This change means the Model Y could become around $6,000 more expensive. The car was earlier priced at 1.87 million liras (about $46,100), but the tax increase might make it less attractive to buyers. At the same time, cars with regular petrol or diesel engines won’t face this new tax.
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Other EV Brands Also Affected
Other electric car companies may also face problems. Chinese carmaker BYD, which plans to build cars in Turkey, will be affected. Brands like Volkswagen, Hyundai, and Stellantis that sell affordable EVs in Turkey could also see their sales drop.
This tax increase adds to Tesla’s global struggles, with EV demand falling in some markets, delays in self-driving car technology, and fewer government subsidies in the US.
