Tesla’s grip on the European electric vehicle market weakened dramatically last month, with new figures showing a 49 per cent drop in sales across 32 European countries compared with April 2024 — a sharp contrast to the overall EV sector, which posted a 28 per cent year-on-year rise.
According to data released by the European Automobile Manufacturers Association, Tesla sold just 7,261 vehicles in April, down from 14,228 a year earlier. It marks the fourth consecutive month of falling sales for the US-based carmaker, as it struggles to navigate political controversy, an ageing product line-up, and mounting competition from both European and Chinese rivals.
Tesla’s market share in the region has now halved to 0.7 per cent, from 1.3 per cent a year ago, signalling a broader shift in consumer sentiment and brand perception. Much of the drop is being attributed to a backlash against CEO Elon Musk, who has become increasingly outspoken in support of President Trump and has taken up an advisory role at the White House.
Boycotts and protests targeting Musk’s political affiliations have gained momentum in several European countries. At the same time, rivals such as China’s BYD and SAIC — the latter owning the UK-based MG brand — have been aggressively expanding across Europe with affordable electric models. SAIC’s sales rose 54 per cent in April, while BYD overtook Tesla in monthly EV sales for the first time.
The performance adds to Tesla’s turbulent start to 2025. For the first four months of the year, Tesla sold 61,320 vehicles in Europe — down nearly 39 per cent year-on-year — while the broader European automotive market remained flat.
The slump comes as Tesla deals with supply issues caused by temporary factory shutdowns earlier this year to retool production lines for its updated Model Y. The Model Y, previously Tesla’s bestseller, has seen lacklustre reception in Europe amid a rising tide of newer, cheaper alternatives.
Despite the sales collapse, Tesla shares rose 4 per cent in New York on Tuesday to close at $362.89, valuing the company at $1.2 trillion. The uptick came as investors bet on a potential recovery in production and demand in the second half of the year.
Meanwhile, the data paints a mixed picture for the UK’s zero-emission ambitions. Although battery-electric vehicle (BEV) sales in Britain rose 8 per cent in April to 24,500, growth lagged behind surging markets in Germany and France. The UK has seen a 35 per cent year-to-date increase in EV registrations, helped by strong Q1 performance, but April’s dip reflects the wider impact of the government’s recent easing of its zero-emission vehicle (ZEV) mandate.
The mandate had previously encouraged manufacturers to prioritise EV shipments to the UK to avoid financial penalties for missing sales targets. Its relaxation has taken some of the pressure off, but risks slowing momentum in the UK’s EV transition.
Overall, electric vehicles made up 17 per cent of all new car sales in Europe last month. Total vehicle registrations, including petrol and diesel models, slipped slightly to 1.07 million in April.
With Tesla’s European dominance faltering and a new generation of affordable EVs from China entering the market, the electric car race is rapidly evolving. Musk’s political stances and product pipeline will now face even greater scrutiny as Tesla looks to regain ground in a region that was once one of its most lucrative.
