Quarterly sales of Tesla outpace global premium cars from German automakers

In the ever-evolving world of automotive manufacturing, a significant shift has taken place in the first quarter of 2023. American electric vehicle (EV) giant, Tesla, has surpassed German premium carmaker, Audi, in terms of customer deliveries.

According to data provided by both companies, Tesla delivered 422,875 customer vehicles in Q1 2023, while Audi managed 415,700 deliveries during the same period. This milestone marks a significant step for Tesla as it continues to challenge the established European Original Equipment Manufacturers (OEMs) in the competitive European market.

The study now features an in-depth look at the Chinese OEMs and their European expansion, as these players are also posing a potential threat to the established European OEMs. The Chinese automaker, Changan, ranked fifth largest in China, is a particularly threatening competitor. Changan plans to invest €2 billion to build over 1,000 dealerships across Europe by 2030, aiming for a 2-3% market share in Germany alone and launching eight new models within three years.

Other Chinese OEMs, such as BYD and Geely, are strategically expanding in Europe. BYD, for instance, has tripled its hybrid registrations in the EU during the first half of 2025 compared to the previous year, aiming to bypass EU tariffs on electric vehicles.

Tesla's success in Q1 2023 can be attributed in part to its pricing strategy, which may be moving towards more volume brand territory. The company benefited from sharp price cuts during this period, a strategy that has been compared to a car crashing through a multi-story parking lot, weighed down by discounts.

Meanwhile, German premium OEM pricing is expected to remain stable and not make similar short-term cuts. However, the outlook for the Chinese OEMs' impact on the European market is not yet specified in the provided paragraph.

Interestingly, Tesla's production ramp-up from new facilities, such as the European Brandenburg site in Germany, reached a 5,000 weekly production rate at the end of March 2023. This production rate could potentially put pressure on Renault Group, Stellantis brands, and Volkswagen Group volume brands, as Tesla continues to expand its presence in the European market.

As the automotive industry continues to evolve, it will be fascinating to observe how these developments unfold in the coming quarters. The race for market dominance in the European market is heating up, and it seems that Tesla is leading the charge with its aggressive expansion strategies.