Tesla Sales Drop in Europe for Fifth Straight Month
Tesla's grip on the European electric vehicle market is slipping fast. The company's sales have dropped for the fifth consecutive month, and there's no clear sign of recovery. According to new data from the European Automobile Manufacturers' Association (ACEA), Tesla's registrations in the EU, UK, and EFTA countries plummeted nearly 28% in May compared to the same month last year. That's just the latest blow in what's become a sustained slide.
So far in 2025, Tesla has sold about 75,196 vehicles across these markets - a 37.1% year-over-year drop. Market share is shrinking just as the electric vehicle segment continues to grow across Europe, suggesting that Tesla isn't simply suffering from a slowing market, but falling behind in an increasingly competitive one.
Tesla's European sales fell sharply right out of the gate in 2025. In January, the company sold just 9,945 vehicles - a 45.2% year-over-year decline. February followed with a 40.1% drop. March fared slightly better with a 28.2% dip, but April was brutal, with demand nearly halving. May's 27.9% decline sealed a five-month losing streak.
These losses reduced Tesla's market share in the region from 2.1% in early 2024 to just 1.3% in 2025. While the company is shrinking, the EV market around it is growing. All-electric vehicles accounted for 17.1% of the overall market through May, up from 13.1% during the same period last year.
There's no single cause behind Tesla's slump, but several factors are at play. First, the competition has intensified, particularly from Chinese automakers offering lower-cost EVs that appeal to price-sensitive European buyers. Brands like BYD and MG are rolling out models that often undercut Tesla on price while offering comparable range and features.
Second, Tesla's own product lineup is aging. The Model S is over a decade old. The Model 3 and Model Y, while recently refreshed, are no longer the standouts they once were. Other automakers have caught up, both in terms of technology and overall appeal. Third, CEO Elon Musk's increasingly political and polarizing public persona may be tarnishing Tesla's brand image in parts of Europe, although quantifying that impact is challenging. Still, public perception matters, and Musk's antics may be wearing thin with European consumers.
Tesla's best hope for reversing course in Europe might be the long-rumored low-cost model aimed at expanding its reach. However, confusion reigns about whether such a vehicle will even be coming. Reuters reported in 2024 that the affordable Tesla had been shelved - a claim Musk denied, calling the report a lie.
In the meantime, rivals are flooding the market with options, and European regulations are tightening. With the EU's planned 2035 ban on new combustion-engine cars looming, every automaker is doubling down on EVs. That could squeeze Tesla further unless it finds a way to compete on both innovation and price. For now, the company's dominance in Europe looks increasingly like a thing of the past.
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