LONDON (AP) — Tesla sales across Europe plunged by half last month, signaling significant challenges for the electric vehicle manufacturer as it grapples with a backlash against CEO Elon Musk's political involvement. According to data released on Tuesday, May 27, 2025, by the European Automobile Manufacturers’ Association (ACEA), Tesla's sales in 32 European countries tumbled 49% to 7,261 in April from 14,228 in the same month last year.
This dramatic decline comes despite a broader increase in the electric vehicle market, where battery-electric vehicle sales rose about 28% across all manufacturers during the same period. While Tesla struggles, other brands, particularly those from China, are gaining ground. Notably, sales for China’s SAIC surged by 54% in April, highlighting the growing competition Tesla faces.
Protests and boycotts have erupted at Tesla dealerships across Europe, fueled by Musk’s controversial political actions, particularly his alignment with former U.S. President Donald Trump. This political entanglement has reportedly damaged Tesla's brand image in a region where consumers are increasingly sensitive to corporate governance and social responsibility.
In April, Tesla's sales represented just 0.6% of new car registrations in the European Union, down from 1.3% a year earlier. This decline marks the fourth consecutive month of falling sales for the company, which has also been hampered by an aging product lineup and a lack of new mass-market offerings.
As the electric vehicle market continues to expand, Tesla's competitors are not sitting idle. For the first time, the Chinese manufacturer BYD sold more pure electric cars in Europe than Tesla, with 7,231 registrations compared to Tesla's 7,165 in April. This shift marks a significant turning point in consumer preferences, as European buyers increasingly gravitate towards more affordable electric vehicles.
Over the first four months of 2025, Tesla's sales fell approximately 39% to 61,320, while the overall auto market in Europe showed little change. The ACEA reported that car sales in the EU edged up by 1.3% from the previous year, indicating a recovery in the market, albeit without Tesla's participation.
Additionally, Tesla's need to upgrade its popular Model Y sport utility vehicle earlier this year resulted in factory shutdowns, further constraining supply and contributing to the sales slump. Meanwhile, traditional automakers and new entrants alike are stepping up their game, offering a wider range of hybrid and electric options that appeal to consumers.
Hybrid electric vehicles, which combine traditional fuel engines with battery power, now account for over 35% of the total European car market. Tesla, which only offers fully battery-powered vehicles, is missing out on this segment of the market, potentially alienating buyers looking for more versatile options.
Market analysts have noted that the backlash against Musk's political involvement is compounded by a general trend among European consumers who are becoming more discerning about the brands they support. "Tesla's reputation has taken a hit due to Musk's political activities, and that’s affecting sales," noted one industry expert. As consumers increasingly favor brands that align with their values, Tesla's current trajectory raises concerns about its future in Europe.
In a recent earnings call, Musk acknowledged the challenges facing Tesla but expressed confidence in the brand's long-term prospects. He stated, "I plan to dedicate a day or two per week to government work, but I am committed to leading Tesla for the next five years." This commitment comes at a time when investors are questioning his dedication, given his time spent advising Trump and his role in the so-called Department of Government Efficiency.
Despite the turmoil, there is a silver lining for Tesla. Shares gained 3% in premarket trading on Tuesday, amidst a broader market rally after Trump delayed proposed tariffs on EU goods. However, Tesla stock remains down 16% year-to-date, reflecting ongoing investor concerns about the company’s ability to recover from its current slump.
As Tesla navigates these turbulent waters, the company must contend with a rapidly evolving automotive landscape where consumer preferences are shifting towards more affordable and versatile electric and hybrid vehicles. The ongoing competition from both traditional automakers and aggressive new entrants from China is reshaping the market dynamics, leaving Tesla at a crossroads.
For the first time in years, Tesla's dominance in the European electric vehicle market is being challenged, and how the company responds in the coming months will be critical to its survival in this key region. The future of Tesla in Europe depends not only on its ability to innovate and adapt but also on how it manages its public image amid the political controversies surrounding its CEO.
