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Money blog: Tesla sales tank in Europe; rival takes fight to Aldi as supermarket competition intensifies

Money blog: Tesla sales tank in Europe; rival takes fight to Aldi as supermarket competition intensifies

  • 25.03.2025 09:45
  • news.sky.com
  • Keywords: Tesla, Morrisons

Tesla sales in Europe fell nearly 50%, Morrisons closes 17 stores, and Co-op matches Aldi prices to compete.

Tesla ProductsTSLAsentiment_dissatisfiedNDAQsentiment_satisfied

Estimated market influence

Morrisons

Negativesentiment_dissatisfied
Analyst rating: N/A

Morrisons is closing 17 stores and multiple in-store services, affecting 365 employees with potential redundancy but most being redeployed. This move aims to redirect cash to other parts of the business.

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Tesla's sales in Europe fell by nearly 50% in February compared to the same period last year, with electric vehicle market share dropping from 21.6% to 10.3%. Competitors like Volkswagen and BMW have outperformed Tesla.

Co-op

Positivesentiment_satisfied
Analyst rating: N/A

Co-op launched an Aldi price match scheme, reducing prices on over 100 items, available in all 2,400 stores and online platforms. This initiative aims to tackle the 'Achilles' heel of convenience shopping' by offering better value without compromising quality or range.

Asda

Asda

Positivesentiment_satisfied
Analyst rating: Buy

Asda has recently slashed prices on thousands of products to compete with cheaper rivals, enhancing its market position.

Context

Business Insights and Market Implications

Morrisons Store Closures

  • 17 stores to be closed permanently
  • 52 cafes, 35 meat counters, 35 fish counters, 4 pharmacies, and all 18 market kitchens will shut down
  • 365 employees at risk of redundancy, but most will be redeployed
  • Closures expected over the next few months to redirect cash to other parts of the business

Co-op Launches Aldi Price Match Scheme

  • Over 100 items reduced in price as part of a new scheme
  • Available exclusively to 2.4 million active members across all 2,400 Co-op stores
  • Online platforms like Deliveroo and Uber Eats will also offer the same prices
  • 6 million member-owners with a £1 membership fee, highest influx in seven years

Tesla Sales Decline in Europe

  • Tesla sales fell by nearly 50% year-over-year in February 2024
  • Sold less than 17,000 cars across 25 EU markets, UK, Norway, and Switzerland
  • Market share dropped to 10.3%, down from 21.6% in the same period last year
  • Competitors like Volkswagen (EV sales up 180%) and BMW Group are gaining market share

Competitive Dynamics

  • Supermarket competition intensifying: Co-op's price match scheme signals a shift to compete on affordability, while Asda has also slashed prices.
  • Tesla's image crisis: Elon Musk's political ties and public stunts (e.g., Nazi salute allegations) are damaging brand reputation, leading to protests and vandalism.

Strategic Considerations

  • Morrisons restructuring: Focus on streamlining operations and redeploying workforce to maintain profitability.
  • Co-op membership strategy: Leveraging member loyalty with discounted prices to differentiate from cheaper rivals like Aldi.
  • Tesla's long-term risks: Declining sales and reputational damage could impact global market share and investor confidence.

Market Trends

  • Price sensitivity in grocery shopping: Co-op's move highlights the growing importance of affordability in convenience retail.
  • Electric vehicle competition: European automakers like Volkswagen are gaining ground as Tesla faces both operational and reputational challenges.