Sales of Tesla have plunged by 49% in the European Union in the first two months of 2025, showing an increasing difficulty for the electric vehicle producer. Based on the European Automobile Manufacturers’ Association (ACEA), Tesla sold 19,046 automobiles in January and February this year, a decline from the same period last year. This drop takes place even as new car sales, including electric cars, rose by 28.4% to 255,489 units in the region.
This decline in Tesla sales has been linked to the increasing competition from other automobile manufacturers in Europe and China who are coming in with better and more technologically advanced vehicles. Analysts argue that with no significant changes to the Model 3 and Model Y, Tesla’s outdated product portfolio is no longer able to draw customers as many other companies are coming up with new models. However, these models have also been upgraded but still look the same and therefore, do not attract customers who are looking for something new.
Over the years, Tesla’s brand in Europe has also been damaged to some extent, this is mainly because of CEO Elon Musk’s politics. He has recently supported Germany’s far-right Alternative for Germany (AfD) party and this has caused a lot of outrage, resulting in a huge decline in Tesla sales in Germany. Tesla sales in Germany declined by 76% in February following a near 60% drop in January. The company’s market share in Europe now is 1.1%.
Furthermore, issues with reliability of Tesla and the recall of Cybertrucks (although the Cybertrucks have not been released in Europe yet) have not helped the situation. However, one Chinese automaker, SAIC, which makes EVs under the MG brand, has emerged ahead of Tesla in market share.
As the electric vehicle market expands in Germany, Belgium, and the Netherlands, Tesla has to respond to changing consumer demands to remain relevant in Europe.
