Tesla's electric vehicle (EV) sales in Europe have dropped by 49% in the first two months of 2025 compared to the same period last year, despite an overall rise in EV sales across the region, according to the European Automobile Manufacturers' Association.
Industry experts attribute the decline to an aging vehicle lineup, increasing competition from major automakers, and growing backlash against Tesla CEO Elon Musk over his political affiliations. Musk’s endorsement of Germany’s far-right Alternative for Germany (AfD) party during last month’s election sparked widespread condemnation across Europe.
Tesla is also facing mounting pressure from Chinese automaker BYD, which has significantly expanded its EV and hybrid vehicle production. BYD recently reported record revenue of 777.1 billion yuan ($107 billion) for 2024, marking a 40% surge in vehicle sales. Additionally, the company unveiled an ultra-fast EV charging system, claiming to rival traditional fuel refueling times.
In January and February 2025, Tesla’s sales dropped to 19,046 units, compared to 37,311 in the same period last year. Meanwhile, sales of all battery-electric vehicles in Europe grew by 28.4%.
Beyond Europe, Tesla is facing a global sales decline. In January, the company posted its first annual sales drop in over a decade. Adding to its woes, Tesla’s Cybertruck has suffered multiple recalls, including one last week, when the company recalled nearly all units due to windshield panels detaching while driving. This marked the eighth recall for the Cybertruck since its launch.
In both the US and Europe, protests have targeted Tesla dealerships and vehicles in response to Musk’s political endorsements and his advisory role to US President Donald Trump, particularly regarding drastic government downsizing.
As Tesla grapples with declining sales and reputational challenges, competition in the EV market continues to intensify, posing significant hurdles for the company’s future growth.
