In a significant downturn, Tesla’s vehicle sales across Europe have experienced a dramatic 49% decline in April 2025 compared to the same month the previous year. This drop, from 14,228 units to 7,261, occurs despite a 28% overall increase in battery-electric vehicle (BEV) sales across the continent, highlighting challenges specific to Tesla amidst a growing EV market.
Industry analysts attribute this sharp decline to multiple factors. Foremost among them is the growing backlash against CEO Elon Musk’s political engagements, particularly his support for far-right parties in Europe and the U.S. Musk’s endorsement of Germany’s Alternative for Germany (AfD) party and his involvement with former U.S. President Donald Trump’s administration have sparked protests and boycotts, notably in Germany, Tesla’s largest European market.
Beyond political controversies, Tesla faces stiff competition from both established European automakers and emerging Chinese brands. Chinese manufacturer SAIC, which owns the MG brand, reported a 54% surge in sales in April, capitalizing on the demand for affordable EVs. Similarly, BYD surpassed Tesla in European EV sales for the first time, registering 7,231 units compared to Tesla’s 7,165.
Tesla’s aging vehicle lineup further exacerbates its challenges. While the company introduced an updated Model Y earlier this year, it failed to reignite consumer interest. Additionally, temporary factory shutdowns for upgrades have constrained supply, impacting sales figures.
In the first four months of 2025, Tesla’s total European sales declined by nearly 39% to 61,320 units. This contrasts with a modest 1.3% increase in overall EU car sales during the same period, indicating Tesla’s specific struggles amidst a resilient automotive market.
The company’s market share in Europe has consequently diminished, with competitors like Volkswagen, BMW, Renault, and BYD gaining ground. Volkswagen, for instance, has claimed Europe’s top EV spot, selling nearly 20,000 units in February alone.
As Tesla navigates these multifaceted challenges, its future in the European market hinges on addressing both its internal strategic decisions and external perceptions. The company’s ability to innovate, expand its product lineup, and manage its public image will be critical in regaining its foothold in Europe’s competitive EV landscape.
