In the first two months of 2025, Tesla’s sales in Europe dropped by 42.6% compared to the same period last year, with its market share for battery-electric vehicles (BEVs) falling from 21.6% to 10.3%. The overall sales of electric vehicles in Europe meanwhile grew from 26% to 34% in the same timeframe.
“2025 has started really brightly for Europe’s electric car market,” said Chris Heron, E-Mobility Europe’s secretary general. Why cannot the same be said about Tesla?
One reason could be the growing wave of disapproval directed at Elon Musk, Tesla’s CEO, and his increasingly vocal and visible political leanings, particularly his support for far-right parties in Europe.
For example, during the 2025 election campaign Musk endorsed Germany’s (far-right) AfD party, describing it as the “best hope for the future.” In February, the month of the election, Tesla’s sales in Germany were 76% lower than they were in the same period last year, when Germany was Tesla’s biggest European market. In the same timeframe, overall registrations of non-Tesla electric vehicles in Germany increased by 32% according to EV-Volumes.
Reports of vandalism targeting Tesla vehicles and dealerships across the continent are another testament to the negative sentiments towards the automaker, as is a T-Online survey of over 100,000 respondents in which 94% of German citizens said they would never buy a Tesla car.
Adding to Tesla’s woes is the intensifying competition within the European electric vehicle market. Both established European automakers like Volkswagen, Renault, and Citroën and a surge of new entrants from China are vying for consumer attention and market share. Chinese brands, including Volvo, BYD, and Polestar, experienced substantial sales growth and even surpassed Tesla’s sales volume in Europe during some months, including this February.
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Further, some analysts suggest that Tesla’s current model lineup, while still popular, is beginning to show its age, lacking the fresh appeal of newer competitors and missing more budget-friendly options. The ongoing transition to the updated Model Y, known as “Juniper,” in Europe may also be contributing to the dip in sales as the production of the previous model might have been scaled back. But as some experts argue, pointing to decreased sales of the Model 3 as well, the decline in sales might be too significant to be solely attributed to the Model Y refresh.
In conclusion, the significant drop in Tesla sales and market share in Europe may be attributed to the confluence of growing anti-Musk sentiment, fueled by his political engagements, and the rise of formidable competitors offering increasingly attractive electric vehicles. While the arrival of the refreshed Model Y could offer a potential boost, Tesla faces an important challenge of addressing its brand perception and adapting to a rapidly evolving and highly competitive European electric vehicle landscape.
Editor’s Note: The opinions expressed here by Impakter.com columnists are their own, not those of Impakter.com — Cover Photo Credit: Andres Jasso.
