Tesla sales across Europe drop significantly amid growing competition and Musk backlash

Tesla has witnessed a sharp decline in its European sales, dropping by 49 per cent in April compared to the same period last year. Despite a 28 per cent rise in the broader battery-electric vehicle market, Tesla’s sales fell to 7,261 units from 14,228, according to data provided by the European Automobile Manufacturers Association. This marked the fourth consecutive month of declining sales for the American electric carmaker.

The decrease in sales comes at a time of heightened competition from European and Chinese electric car brands. Chinese manufacturers such as SAIC, which owns the UK-based MG brand, posted a 54 per cent rise in sales, signalling an increasing preference for low-cost electric vehicles. Analysts have pointed out that Tesla appears to be losing ground to rivals, particularly in markets prioritising affordability and innovation.

Elon Musk, Tesla’s CEO since 2008, has also faced growing criticism over his political views and his outspoken presence on social media. The backlash, coupled with an ageing product lineup, has created a challenging landscape for the company in Europe. Tesla’s market share in the region dropped to just 0.7 per cent in April, half of what it was a year earlier.

A temporary closure of Tesla’s manufacturing facilities earlier this year to upgrade its popular Model Y SUV also contributed to supply shortages. These production delays further impacted sales figures while new entrants such as BYD, a Chinese electric vehicle maker, capitalised on the gap. BYD even surpassed Tesla’s European sales in April, highlighting the shift in consumer demand in the region.

Data from the first four months of 2025 shows a 39 per cent drop in Tesla’s European sales, with 61,320 vehicles sold compared to the previous year. In contrast, the overall battery-electric car market continues to grow. Approximately 27 per cent more electric cars were sold across the continent in April, representing 184,000 units. This equates to a 17 per cent share of total monthly vehicle sales in Europe.

The UK, which aimed to lead Europe’s electric car transition, also reported weaker growth compared to Germany and France. Relaxation of the government’s zero-emission vehicle mandate partially contributed to the slowdown, with April registrations rising only 8 per cent. Despite this, the UK remains 35 per cent ahead in year-to-date registrations with 144,000 electric vehicles sold.

Tesla continues to face mounting pressure to adapt to the evolving European market landscape, particularly as Chinese and European brands gain traction. The company’s ability to address supply chain issues, refresh its product lineup, and navigate the consequences of Musk’s controversies will undoubtedly influence its prospects in the region.

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