Many of you brought up very good points that I hope BMW will listen. If I was on BMW's market development team, I definitely would check this forum first!
There are many reasons for the drop in BMW sales. Personally my biggest gripe is with the dealer experience. I have had such bad experience with BMW sales that I was completely turned off by the brand until I was referred to the CA who helped me with ED of my X1. I like X1 for its practicality and fuel efficiency. The driving experience is surprisingly satisfying and fun despite of its front-wheel drive bias. Nevertheless, I swear if it wasn't for this CA I would be driving a Audi Allroad today.
My second issue is that I think BMW is expensive for what they offer comparing to all other new cars out there today. For a $40k+ car, the halogen headlights that shine what seems like only 6 feet in front are just not excusable for anyone's standard. Many F48 X1 buyers pay about $45K to almost $50K for cars don't even come with blind-spot monitoring system and no available Apple CarPlay or Android Auto that are available for Honda and Hyundai. I opted out on a lot of the technology stuff just to keep my car around $40K after last year's ED discount. I am not sure if I will buy BMW again in about 5 years since I don't know what the market will be like then, but I know that in today's market given BMW's products, I will be looking at Audi cars, not BMW.
I still think BMW makes great cars, but they don't excel in any category any longer. BMW cars in the recent years have been disappointing for many long-time loyal enthusiasts with their light handling feel. Mazda has been praised for the handling more often than BMW recently. Furthermore, BMW is also falling behind in the technology offering. I feel that BMW has been playing catching up to their competitors in technology offering. BMW is making it easier and easier for the competitors to win over the potential buyers.
Tesla may not be a big threat to BMW at this time, but they do excel in making long-range electric cars that they can focus on improving. BMW needs to figure out what their strength is and refocus on it instead of using their energy and resource trying to expand their market share but ending up with making just average products.