In January and February, Tesla’s sales in Europe fell 49%, highlighting the company’s difficulties in the face of growing EV market competition. According to the European Automobile Manufacturers Association (ACEA), the number of new Tesla registrations in the EU dropped from 37,000 last year to 19,046 in the first two months.
Tesla’s market share decreased from 2.1% to 1.1% despite a 28.4% increase in EV sales throughout Europe. In February alone, Tesla commanded 1.8% of the overall car market and 10.3% of the Better-Electric Vehicle (BEV) segment compared to 2.8% and 21.6%, respectively, in the same month last year.
Analysts attributed the decline to Tesla’s aging models, competition from newer, cheaper EVs, and CEO Elon Musk’s controversial actions. Musk’s vocal support for far-right political groups and association with Donald Trump’s administration have sparked boycotts against Tesla in Europe.
Protestors have targeted Tesla dealerships while the company’s stock price has suffered significant drops. Additionally, Tesla’s Model Y, its bestselling vehicle, is undergoing an update, further disrupting sales.
Jato Dynamics reported that Tesla sold fewer than 16,000 vehicles in February across 25 EU markets, including the UK, Norway, and Switzerland. This marked a 44% decline compared to the same period last year.
Meanwhile, rivals Volkswagen and BMW surged ahead, with Volkswagen recording a 180% rise in BEV sales and BMW reporting nearly 19,000 registrations. Chinese EV giant BYD also gained traction, increasing European sales by 94% to over 4000 vehicles in February.
Globally, BYD surpassed Tesla in annual revenue last year, reporting $100 billion compared to Tesla’s $97.7 billion. Despite Tesla’s challenges, hybrid electric vehicles remained the largest market segment in Europe, holding a 35.2% market share with 594,059 registrations.
Electrified vehicles accounted for 58.4% of all passenger car registrations in February, reflecting the growing shift toward zero-emission mobility. As competitors like BYD and Polestar capitalize on this growth, Tesla must address its challenges to reclaim its European foothold.
