Tesla's European sales plunged 49% in early 2025 amid ageing models and political controversy surrounding CEO Elon Musk, highlighting shifting EV market dynamics.
 |
| Tesla's EU sales fell 49% in early 2025, with shifting EV demand, hybrid growth, and controversy surrounding Elon Musk reshaping the European car market. Image: Tesla |
Brussels, Belgium — March 25, 2025:
Tesla’s European sales took a dramatic downturn in early 2025, plummeting by 49% in January and February compared to the same period last year, according to data from the European Automobile Manufacturers’ Association (ACEA). The decline comes despite a 28.4% rise in overall electric vehicle (EV) sales across the EU during the same period, suggesting that Tesla’s struggles are not reflective of broader industry trends.
Several factors appear to be contributing to Tesla’s decline. Market analysts point to the company’s ageing model lineup, which has seen relatively few major updates in recent years, making it less competitive against emerging EV brands. However, industry observers also note that Tesla’s drop in sales coincides with growing political tensions surrounding its CEO, Elon Musk.
Since becoming a vocal supporter of U.S. President Donald Trump and leading the newly created Department of Government Efficiency (DOGE), Musk has faced mounting criticism. Some European consumers, particularly those who prioritize environmental and progressive policies, may be turning away from Tesla in response to his political stance. Additionally, Tesla dealerships in the U.S. have been targeted by vandals in recent weeks, reflecting broader discontent with the company and its leadership.
In February alone, Tesla’s EU registrations dropped by 47% to 11,743 vehicles. Its market share has shrunk to just 1.1%, a stark contrast to the surging EV sector. Hybrid-electric vehicles have emerged as the dominant force in the European car market, accounting for 35.2% of new registrations, surpassing both petrol and diesel models.
Despite Tesla’s struggles, ACEA Director General Sigrid de Vries emphasized that overall demand for battery electric vehicles still falls short of what is needed for a full transition to zero-emission mobility. She highlighted the necessity of increased government incentives and investment in charging infrastructure to sustain EV market growth.
Meanwhile, the European Union is considering easing emission reduction targets to support struggling domestic automakers, a move that could further impact Tesla’s competitive position in the region. With Tesla’s declining sales and the broader shift in consumer preferences, the company faces increasing pressure to adapt its strategy in Europe’s evolving automotive landscape.