open_in_newOriginal article
Tesla sales plummet in Europe despite EV growth

Tesla sales plummet in Europe despite EV growth

  • 25.03.2025 09:31
  • aljazeera.com
  • Keywords: Tesla, EV Growth

Tesla's sales in Europe dropped 49% year-over-year in January and February due to aging models, rising competition, and controversy surrounding Elon Musk. Despite overall EV growth, Tesla's market share fell from 2.1% to 1.1%, with boycotts and vandalism targeting its dealerships.

Tesla NewsTSLAsentiment_dissatisfied

Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Tesla's sales dropped significantly in Europe despite overall EV growth.

Context

Analysis of Tesla Sales Decline in Europe

Market Performance

  • Tesla registrations in EU: 19,046 (Jan-Feb 2025) vs. at least 37,000 (Jan-Feb 2024), a 49% year-on-year drop.
  • Market share decline: From 2.1% to 1.1% over the same period.
  • February 2025 EV market share: 10.3% (down from 21.6% in Feb 2024).
  • Total EU EV registrations growth: +28.4% year-on-year.

Competitive Landscape

  • Rising competition: Traditional automakers and Chinese EV manufacturers are launching newer, cheaper models.
  • Aging Tesla design: Seen as a key factor in declining sales.
  • Political controversies: Elon Musk's support for far-right groups and Trump administration trade policies impacting brand image.
  • Boycott movements: Increasing across EU, with dealership vandalism reported.

Strategic Challenges

  • Brand reputation: Controversies around Musk affecting consumer sentiment.
  • Product refresh cycle: Tesla models lagging behind competitors' innovation.
  • Market saturation: Intense competition in the EV sector.

Industry Dynamics

  • EV adoption growth: Despite challenges, EU EV registrations increased significantly.
  • Hybrid dominance: Hybrid-electric vehicles accounted for 594,059 registrations (35.2% market share) in Jan-Feb 2025.
  • Electrified vehicle penetration: 58.4% of passenger car registrations in Feb 2025 (up from 48.2% in Feb 2024).
  • Regulatory and policy calls: ACEA Director General Sigrid de Vries emphasizes need for tax incentives, recharging infrastructure, and easing emission targets.

Long-term Implications

  • Tesla's position: Risk of losing market share to newer competitors unless product and brand image issues are addressed.
  • EU EV growth: Despite challenges, the sector shows resilience, but further policy support is crucial for sustained momentum.