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Tesla’s European Sales Collapse as Market Share Hits Record Low

April sales in key European markets plummeted by up to 81%, while efforts to revive demand with a refreshed Model Y have faltered.

A Tesla electric vehicle is charged at a Tesla Supercharger battery charging station in Barakaldo, Spain, March 29, 2025. REUTERS/Vincent West/File Photo
Signage at a Tesla store in Colma, California on Jan. 2, 2025. Photographer: David Paul Morris/Bloomberg
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Overview

  • Tesla’s April 2025 sales in Europe saw dramatic declines, including an 81% drop in Sweden and steep double-digit losses in other major markets like the Netherlands and France.
  • The company’s European Union market share fell to 1.3% in Q1 2025, down from 2.4% the previous year, as overall EV sales in the region grew nearly 24%.
  • In the broader EU+UK+EFTA region, Tesla’s Q1 sales dropped 37.3%, while competitors drove a 28% rise in total EV sales.
  • The refreshed Model Y, aimed at boosting demand, has failed to reverse Tesla’s sales slump in Europe, highlighting challenges with its aging product lineup.
  • Tesla plans to unveil a more affordable EV next month, though details remain unclear, as the company seeks to regain ground in an increasingly competitive market.