Home Business Automobile Tesla’s European EV sale...

Tesla’s European EV sales drop sharply amid rising Chinese competition.

Automobile

Business Honor
28 May, 2025

Tesla’s Europe sales halve due to political backlash, factory shutdowns, and strong Chinese rivals.

Recent statistics from the European Automobile Manufacturers Association show a significant decline in Tesla's car sales in Europe. Just 7,261 Tesla vehicles were sold in April showing a sharp decrease from 14,228 units sold in the same month the previous year. The US electric vehicle (EV) manufacturer has seen a drop in sales for the fourth consecutive month. Tesla's market share in Europe has dropped from 1.3% to just 0.7% in the last 12 months.

This drop shows Tesla's mounting problems which include an older product selection, political disputes involving CEO Elon Musk, and heightened competition from Chinese and European EV manufacturers. A key factor in Tesla’s sales drop is backlash against Musk’s political views and his advisory role in the US government which has sparked boycotts and protests across several European countries.

At the same time, Chinese EV manufacturers like BYD and SAIC (which owns the UK-based MG brand) are rapidly expanding their presence in Europe. BYD surpassed Tesla for the first time in terms of monthly sales of electric cars, and SAIC saw a 54% increase in sales in April.

Tesla’s production has also been affected by temporary factory shutdowns earlier this year to update production lines for the Model Y, previously the company’s best-selling vehicle. However, the Model Y is facing tough competition from newer more affordable EV options in the European market. Despite the sales slump, Tesla’s shares increased by 4% in New York, reflecting investor confidence in a possible production and demand recovery later this year. At $1.2 trillion the company's market value is still high.

With new competitors and changes in customer preferences the global EV battle is changing as shown by Tesla's waning position in Europe. Whether Tesla can regain its position in this fiercely competitive market will depend on Musk's leadership and the company's next product releases.