Tesla’s sales in Europe have suffered a massive decline, dropping nearly 50% in the first two months of 2025 compared to the same period in 2024. According to the European Automobile Manufacturers’ Association (ACEA), Tesla registered 19,046 new vehicles in January and February, reducing its market share from 2.8% to 1.8%.
This downturn is particularly severe in key markets like Germany, where new Tesla registrations fell by 76% in February, and France, where registrations dropped 63% in January. These declines contrast with the overall European battery electric vehicle (BEV) market, which grew by 24% during the same period.
Several factors are contributing to Tesla’s struggles. CEO Elon Musk’s political involvement, including his support for former U.S. President Donald Trump and Germany’s far-right Alternative for Deutschland (AfD) party, has led to consumer backlash. Some German companies have even stopped offering Tesla vehicles as company cars. Additionally, anticipation of a refreshed Model Y has caused potential buyers to delay purchases, while increased competition from European automakers like Volkswagen has further squeezed Tesla’s market position.
Despite the sales slump, Tesla’s stock saw a 12% increase on Monday, though it remains down 31% for the year.
