Tesla is losing the European market — here's why
Despite, battery-electric vehicle sales across Europe growing, Tesla's sales shrunk.
Elon Musk is everywhere—on political stages, in courtroom dramas, on late-night news cycles, and buried deep in Twitter fights. But in Europe’s car dealerships? He’s vanishing.
In April 2025, new Tesla registrations across the EU, UK, and EFTA (European Free Trade Association bloc) dropped sharply to 7,261, down from 14,228 in March, according to the European Automobile Manufacturers’ Association (ACEA). This marks an alarming 50% drop month-on-month.
This sharp decline comes on the heels of a 13% drop in global sales in the first quarter of 2025, its worst quarter since 2022.
The drop in sales is already alarming, but the real kicker is that the rest of the electric vehicle market in the EU is growing. Overall, battery electric car (BEV) sales rose by 27.8% in April. Meanwhile, sales of plug-in hybrid cars rose by 31.3%.
So, people are still buying EVs, they’re just not buying Teslas.
It’s a sharp reversal for a company that once led the charge into the electric future. Just a year ago, Tesla was comfortably ahead of the pack, riding the wave of early EV enthusiasm. Now it’s stalling while competitors—especially nimble Chinese brands and hybrid-heavy European automakers—race ahead. Even the refreshed Model Y, meant to revive interest in Tesla’s best-seller, barely moved the needle. Sales kept falling.
Emmanuel Oyedeji
Part of that comes down to product. Tesla hasn’t launched anything truly new in Europe in some time, and the Cybertruck still isn’t available there. Meanwhile, consumers have more choices than ever—many of them fresher, cheaper, or simply more in line with local preferences. Hybrids, especially, have surged in popularity, now making up over a third of Europe’s car market. Tesla doesn’t offer one.
But the bigger issue may not be the product. It may be the person behind it. Elon Musk’s presence looms large over Tesla, and in Europe, that presence is starting to backfire. His alignment with Donald Trump, leadership role in the Department of Government Efficiency, and vocal support for Germany’s far-right parties have triggered real backlash.
That anger hasn’t stayed online. Earlier this year, dealerships in Europe were attacked in protest. The messages left behind blamed Musk directly.
It’s a shift that’s becoming harder to ignore. The sentiment is no longer just political—it’s personal. Musk has become a polarising figure, and the trust he once inspired is fading. For years, Tesla rode the wave of his celebrity. Now, that connection may be pulling the brand down.
Emmanuel Oyedeji
Meanwhile, Chinese EV makers like BYD are gaining ground fast. In April, BYD outsold Tesla in Europe—a symbolic shift, but also a clear signal of how vulnerable Tesla has become in a market it once dominated.
Other cracks are showing, too. In the U.S., Cybertruck sales have stumbled. Trade-ins are happening with steep depreciation. Tesla even scrapped its $16,000 range extender, likely due to weak demand. The hits keep coming, and even loyal investors are starting to question the company’s direction.
Still, during the latest earnings call, Musk struck an upbeat tone. He said sales would recover once factory upgrades were complete and the Model Y rollout smoothed out.
But even if production stabilises, the deeper questions remain: Has Tesla lost its grip on the European market? And more importantly, is the brand damage, so closely tied to Musk himself, already done?
