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Tesla's European Market Share Plummets as Rivals Surge

The EV maker faces a 58% sales drop in early 2025, driven by rising competition, consumer backlash over Elon Musk's political actions, and operational challenges.

  • Tesla's share of European EV sales fell to 7.7% in the first two months of 2025, a 58% decline compared to the same period in 2024.
  • February 2025 saw Tesla's battery-electric vehicle registrations drop by 44%, with its market share hitting a five-year low of 9.6%.
  • Volkswagen and BMW Group both outsold Tesla in February, while Chinese brands like BYD and Polestar collectively surpassed Tesla's sales in Europe.
  • Elon Musk's public support for far-right parties, including Germany's Alternative for Germany (AfD), has fueled a consumer backlash, particularly in Germany.
  • Tesla's challenges are compounded by the phasing out of its Model Y vehicle and a limited model lineup, leaving it vulnerable during product transitions.
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