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Tesla sales in Europe plunge 40% in February as market share drops

Tesla sales in Europe plunge 40% in February as market share drops

  • 25.03.2025 07:07
  • straitstimes.com
  • Keywords: Tesla, Electric Vehicle

Tesla’s February EV sales in Europe fell 40%, with market share dropping to 1.8% from 2.8%. The decline reflects challenges amid Elon Musk’s polarizing politics and the transition to the new Model Y.

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Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Tesla's sales in Europe dropped by 40% in February, with a significant decline in market share. The company is struggling at the beginning of 2025 and is relying on the new Model Y to boost sales.

European Automobile Manufacturers’ Association

Neutralsentiment_neutral
Analyst rating: N/A

Provided data on Tesla's sales figures, but not directly involved in the situation.

Context

Analysis: Tesla Sales Decline in Europe

  • Tesla sales in Europe dropped 40% year-over-year in February, with only 16,888 units registered compared to 28,167 in the same month a year ago.
  • Total EV registrations rose by 31% in the first two months of 2025, while Tesla’s sales fell by 43%.
  • Market share decline:
    • Tesla’s total market share dropped to 1.8% (from 2.8%) and its battery-electric vehicle (BEV) market share fell to 10.3% (from 21.6%).
  • Struggling before Model Y launch: The decline occurred before the March 2025 delivery of the redesigned Model Y, which is Tesla’s most popular vehicle.

Market Trends and Business Impact

  • EV market growth: While the overall EV market in Europe continues to grow, Tesla’s share is shrinking due to increased competition from other brands like BYD and traditional automakers.
  • Production disruptions: Transitioning to the new Model Y caused production halts at Tesla factories globally, including its Berlin assembly plant, leading to lost or deferred sales.

Competitive Dynamics

  • Rising competition: Tesla’s declining market share reflects growing competition in the EV sector. Other brands are gaining traction as they introduce more affordable and appealing models.
  • Strategic focus on Model Y: Tesla is banking on the updated Model Y to revive sales, but its success will depend on production efficiency and consumer reception.

Strategic Considerations

  • Elon Musk’s political influence: Musk’s polarizing stances (e.g., supporting Trump, calling for NATO withdrawal) have likely hurt Tesla’s reputation in Europe, particularly in Germany during the federal election.
  • Investor focus: Future sales data will clarify whether Musk’s politics are directly impacting Tesla’s performance.

Long-Term Effects and Regulatory Impacts

  • Potential market dominance loss: If Tesla fails to recover its market share, it risks losing ground to competitors in Europe.
  • Regulatory shifts: Political tensions could influence future EV policies or consumer sentiment in Europe, potentially affecting the broader EV market.