Tesla sales in Europe fell for a fifth consecutive month in May, down 27.9% in annual shift to only 13,863 new registrations across the European Union, the United Kingdom and the European Free Trade Association, according to Fresh Data of the European Automobile Manufacturers Association (ACEA).
The decline increased Tesla’s market share in the region to 1.2%, against 1.8% a year ago, marking a sharp decline for the American electric vehicle giant which once directed the European vehicle revolution in Europe.
The figures, published on Wednesday, show the increasingly tenuous position of Tesla on the automotive market evolving for Europe, where Chinese car manufacturers and traditional European brands are increasing, offering a larger range of electric and hybrid vehicles at lower prices.
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Tesla’s shares have strongly responded to the data, lowering almost 5% on Wednesday morning and has now lost more than 18% of its value so far in 2025.
Musk’s policy throws long shadows on the brand in Europe
Tesla’s continuous difficulties in Europe come despite the CEO Elon Musk seeming to alleviate his controversial political rhetoric in recent weeks. The change of approach, however, can be too late, because years of public alignment on the far right and the US inflammatory online behavior have already left a bitter taste in a large part of Europe.
Musk’s frank support from President Donald Trump, including information that he donated nearly $ 300 million to Trump’s re -election campaign, sparked generally conviction on the continent. Musk has also become a leading voice in the attack on federal American agencies, publicly calling to sweep the cuts and welcome the regulators of “the armament” of their authority.
Its promotion of conspiracy theories, often shared from its own X platform (formerly Twitter), and repeated attacks against the consumer media and progressive causes, has further cemented its polarizing figure image. Musk has also acquired a notoriety to echo the extreme right accounts on immigration, to attack Dei’s efforts (diversity, equity and inclusion) in technology and sharing publications that many criticisms called your anti -Semitic or white.
The backlash was rapid in Europe, the growing apathy among Tesla dealers in countries like Germany, France and the Netherlands. The unions, which have a considerable influence on many European markets, have become more and more critical towards the anti-regulatory position of Musk and the aversion to collective negotiations.
Even if Musk has moved away from Trump in recent weeks, falling publicly with the president after political disagreements, reputation damage seems to last. Analysts believe that he contributed directly to the deterioration of the Tesla brand on the socially progressive and environmental European markets.
Chinese rivals grow despite the prices
While Tesla escapes, Chinese car manufacturers thrive in Europe, even after Brussels has imposed new prices on Chinese electric vehicles to limit market disturbances. Brands like Byd, MG Motor and Leapmotor have made significant breakthroughs by offering affordable electric and rechargeable hybrid options adapted to consumers sensitive to prices.
According to Jato Dynamics, Chinese brands sold 65,808 vehicles in May only, increasing their market share to 5.9%, more than double compared to the previous year.
“Despite the taxation of EU prices on Chinese electric vehicles, its car brands continue to publish strong growth across Europe,” said Felipe Munoz, global analyst at Jato. “Their momentum is partly due to their decision to push alternative powertrain, such as rechargeable hybrids and complete hybrids.”
Tesla, which offers only fully electric vehicles, has refused to diversify into hybrid models – a decision that now seems to harm the company on a market where consumers are looking towards transitional technologies while they pass combustion engines.
The model does not manage to arouse recovery
The compact SUV on the model refreshed by Tesla, presented as a potential return vehicle, has helped stimulate sales in Norway, one of its strongest European markets. However, it was not enough to reverse the wider decline through the continent.
Meanwhile, traditional car manufacturers like Volkswagen, Renault and BMW have intensified their efforts of electric vehicles, combining competitive prices with solid service networks and brand familiarity – a combination that collapses to the old advantage of Tesla.
The ignition raises serious questions about Tesla’s strategy in Europe, a region that once represented a large part of its international growth. The company’s market share by decreasing and its competitors capitalizing on affordability, flexibility and local good, analysts warn that Tesla needs more than improved technology.
He needs a major brand reset.
If Tesla wants to find its place, it will have to navigate not only in the intensification of competition, but also repair a fractured public image – a task which can be much more difficult than engineering of a new battery or software update.
And in a region as sensitive politically and respectful of the environment as Europe, the voice of Musk can no longer be the best asset of Tesla – it is perhaps its greatest responsibility.
