Tesla sales plummet in Europe despite high demand for EVs

Key Points

• Tesla sales plunged 49% in Europe in April year-on-year, marking the fourth consecutive monthly decline despite growing EV demand.
• Tesla’s market share in the region nearly halved from 1.3% to 0.7% amid intensifying competition from Chinese (SAIC +24.5%) and Japanese (Mitsubishi +22.1%) automakers.
• Battery-electric vehicle registrations rose 26.4% in April, while BEVs, PHEVs and HEVs together accounted for 59.2% of all new passenger car registrations.
• Weak consumer response to the redesigned Model Y and dissatisfaction with CEO Elon Musk’s political activities are further hampering Tesla’s European performance.

Even though the demand for electric vehicles (EVs) is growing throughout the continent, Tesla’s performance in Europe is still struggling. with car sales in April falling 49% from the same month in 2024. Tesla sales drop contrasts sharply with a 27.8% rise in battery-electric vehicle registrations overall, according to the European Automobile Manufacturers Association (ACEA). It’s safe to say that the European leaders of the company are likely under pressure.

Tesla sales plummet in Europe despite high demand for EVs

Tesla sales in Europe have declined for four months in a row, which raises questions about how well its recently updated Model Y is working. The redesigned iteration of Tesla’s best-selling model has not succeeded in igniting a comeback, as the general perception of the brand seems to be changing.

A number of things are working against Tesla. The company’s European momentum is being hampered by a lackluster consumer reaction to new product offerings, growing dissatisfaction with CEO Elon Musk’s political activities, and fiercer competition from Chinese and European automakers.

Tesla’s market share in the area has decreased from 1.3% to 0.7%, almost halving from the previous year. Other brands are growing while Tesla struggles. Registrations increased by 24.5% for China’s state-owned SAIC Motor and 22.1% for Japan’s Mitsubishi. Mazda’s sales, meanwhile, fell precipitously by 24.5%.

In Europe, hybrid and electric cars are becoming more popular despite Tesla’s decline. Battery-electric (BEV), plug-in hybrid (PHEV), and hybrid-electric (HEV) vehicles made up 59.2% of all passenger car registrations in April, a sharp increase from 47.7% in the same month the previous year. In particular, registrations of BEVs increased 26.4%, PHEVs increased 7.8%, and HEVs increased 20.8%.

Challenges in European auto industry

Nevertheless, there were challenges facing the larger European auto industry. After increasing 2.8% in March, the total number of vehicle registrations in the EU, UK, and the European Free Trade Association (EFTA) decreased marginally to 1.07 million units in April. Car sales in 2025 have already decreased 1.2% in the EU alone.

There were conflicting regional trends. Vehicle registrations increased by 7.1% and 2.7% in Spain and Italy, respectively, while they decreased by 5.6% and 0.2% in France and Germany. Registrations fell 10.4% in the UK.

Due to increased competition, new tariffs on U.S. auto imports, and uncertainty in the global economy, European automakers are still under pressure to cut prices. The competitive environment for EVs in Europe is heating up—just as Tesla’s hold on the market is waning—despite the fact that tensions between the United States and China have somewhat subsided.

Featured Image Credit: Craig Adderley; Pexels: Thank You!

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