Tesla's European sales keep falling while EV market booms

More European drivers than ever are choosing to go electric with sales of electric vehicles climbing impressively. Yet one of the biggest names in the EV game seems to be hitting a big speed bump. While the party is in full swing for many EVs, Tesla's invitation appears to have gotten lost in the mail, with its sales numbers telling a rather glum story.

Recent data paints a stark picture. In April 2025, across the European Union, European Free Trade Association countries, and the UK, Tesla sold just 7,261 vehicles. This is a staggering 49% drop compared to the same month in the previous year. The downward trend isn't just a one-off blip either. Looking at the first four months of 2025, Tesla's deliveries in Europe went down by 38.8% year-over-year. This is happening at a time when the overall market for battery-electric cars in Europe expanded by 26.4% during the same four-month period and saw a 34.1% growth in April alone. It seems while other electric vehicle makers are riding a wave, Tesla is paddling against a strong current.

Major companies like the Volkswagen Group, Renault, BMW, and even SAIC are all reporting increased sales, both for April and year-to-date. This makes Tesla's slump even more painful. It's not that Europeans are suddenly losing interest in EVs; they're just seemingly looking elsewhere more often than they used to. The numbers from May suggest that Tesla's second quarter is struggling to gain momentum, barely improving on a weak first quarter and significantly trailing behind its performance in the second quarter of 2024.

Tesla pointed to the production changeover for its popular Model Y as the reason for its poor showing in the first quarter of 2025. Fair enough, production shuffles can temporarily dent delivery numbers. But this explanation is starting to look a bit thin as a similar sales pattern persists into the second quarter, even with the new Model Y now available to customers. To entice buyers, Tesla is reportedly offering substantial discounts and incentives across most European markets. Typically, when a product is flying off the shelves, you don't need to slash prices. This suggests the problem might be less about how many cars Tesla can make and more about how many people want to buy them right now.

So, what's putting the brakes on Tesla's European sales? Blaming the entire decline on the Model Y transition might be an oversimplification. A much bigger factor could be brand damage, thanks to the actions and public persona of Tesla's high-profile CEO, Elon Musk. This narrative seems to be gaining more traction as the sales dip continues into the second quarter, even after production excuses have faded.

The road ahead for Tesla in Europe isn't getting any easier. Competition in the EV market is fiercer than ever. European car buyers finally have a wider choice, with established automakers rolling out new electric models and newer brands from China, making aggressive inroads. This growing selection means Tesla can no longer count on being the default choice for every EV-curious customer. Reversing a nearly 50% drop in sales won't be easy, and it's unclear what new strategies the company might use in Europe.

Source