Skoda Surpasses Tesla in European Electric Vehicle Sales as Musk Faces Consumer Backlash

In a remarkable turn of events, Skoda, once the subject of automotive ridicule, has surpassed Tesla in European electric vehicle sales. The Czech manufacturer, operating under the Volkswagen Group umbrella, delivered 14,920 vehicles in May, outperforming Elon Musk’s Tesla, which managed 14,055 units, according to DataForce market research.

The triumph was largely driven by Skoda’s £31,000 all-electric Elroq SUV range, contributing 9,250 units to the total. Tesla’s European performance has deteriorated significantly, with sales plummeting 28% amid widespread protests concerning Musk’s controversial political alignments with President Trump.

European Automobile Manufacturers’ Association data reveals Tesla’s consecutive fifth monthly decline, with year-on-year figures showing a 40% drop. This downturn occurred despite a robust 25% increase in battery-electric vehicle registrations across the EU, totalling 142,776 units. Plug-in hybrid registrations demonstrated even stronger growth, surging 46.9% to 87,301 units.

Traditional automotive giants maintained steady growth, with Volkswagen Group reporting a 3.4% increase and BMW achieving 5.6% growth. Germany retained its position as the EU’s leading electric vehicle market, registering 43,060 units, marking a 44.9% year-on-year increase. French registrations, however, declined from 23,892 to 19,414.

Chinese manufacturers have capitalised on the market shift towards more affordable alternatives. SAIC Motor secured 18,716 sales in May, up from 13,562 the previous year, capturing 2% market share. Their domestic rival BYD outperformed them for the second consecutive month, achieving 3,025 units according to Society of Motor Manufacturers and Traders data.

The market transformation has impacted Tesla’s valuation, with shares declining $12.92 (3.8%) to $327.55 in New York trading, positioning the company’s market capitalisation at $1.1 trillion. The shift in consumer preferences towards hybrid-electric vehicles, now commanding 35.1% of EU market share, while petrol vehicles declined to 28.6% from 35.6%, signals a significant evolution in European automotive preferences.