Tesla sales in Europe fell 44% last month, marking one of the most important declines for the Texas -based electric vehicle manufacturer (EV) in recent years. The decline, recorded in 25 European countries, including the United Kingdom, Norway and Switzerland – is in the context of growing concerns among shareholders that the controversial political interventions of Elon Musk deactivate potential buyers.
According to Jato Dynamics, Tesla sold less than 16,000 vehicles in the region in February, its lowest market share (9.6%) for the month in five years. This follows an even clearer drop of 45% in January, where sales increased from 18,161 units in 2024 to 9,945 this year.
The increasingly visible role of Musk in Donald Trump’s administration, coupled with his vocal support for the far -right AFD party of Germany and public political waterfalls – such as brandishing a chainsaw during a conservative conference – fueled the concern that Tesla faces a growing growing reaction of consumers. Demonstrations targeting Tesla dealers have also emerged, further complicating the European sales prospects of the company.
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Despite Tesla’s difficulties elsewhere, the British market turned out to be an exception. The Society of Motor Manufacturers and Traders (SMMT) reported a 21% increase in new Tesla car registrations in February, with ranking 3 and the Y model as the second and third most sold cars in the country, behind the Mini Cooper. However, Tesla’s recent success in the United Kingdom does not necessarily thwart the broader trend in the drop in European sales. Analysts argue that incentives for electricity Kingdom electric vehicles, fleet sales and Tesla price reductions can have artificially sustained demand in the short term.
Competitors gain ground
The Tesla sales crisis occurs while European and Chinese car manufacturers quickly gain ground. Volkswagen reported an 180% increase in sales of electric battery vehicles (BEV), reaching nearly 20,000 units in February. BMW and Mini have combined to sell 19,000 BEV, approaching Tesla total, while Polestar recorded an increase of 84%, offering more than 2,000 vehicles. Byd, the Chinese electric vehicle giant, saw an increase in sales of 94% in Europe, exceeding the 4,000 vehicle mark for the month.
Byd’s financial force further underlines its growing domination in the electric vehicle sector. The company declared record annual income of 777 billion yuan ($ 107 billion) for 2024, a figure which overshadowed revenues of $ 97.7 billion in Tesla compared to the previous year. In its profits report published on Monday, Byd revealed a net overvoltage of 34% in annual sliding to just over 40 billion yuan ($ 5.55 billion). This exceeded the expectations of analysts of $ 5.44 billion, but remained below the net profit of $ 7.1 billion in Tesla for 2024.
Byd now sells almost as many electric vehicles as Tesla, with 1.76 million units sold last year, against 1.79 million Tesla. During the inclusion of hybrid sales, byd is much larger, offering 4.27 million vehicles in 2024, or almost 4.5 million world sales in Ford.
Musk’s policy hurts Tesla in Europe
The political affiliations of Elon Musk and the increasingly divisor public personality have an impact on the perception of the brand of Tesla, in particular in progressive markets such as Germany, France and Scandinavia. His approval from the far -right AFD party of Germany, repeated criticism of European leaders and provocative publications on social networks has alienated part of the historically liberal customers of Tesla.
Some Tesla owners would have sold their cars in protest, while potential buyers explore alternatives from inherited European car manufacturers or Chinese brands.
However, analysts believe that the Tesla crisis cannot only be attributed to Musk’s policy. They argue that several commercial factors can contribute to the decline, including the transition of Tesla’s successful model to an updated version, the disturbances of EV government incentives on key markets and increasing competition.
Felipe Muñoz, global analyst of Jato Dynamics, noted that Tesla is experiencing a period of immense change. In addition to the increasingly active role of musk in the policy and increased competition that it faces on the electric vehicle market, the brand removes the existing version of the Y model before deploying the update.
“Tesla is experiencing a period of immense changes. In addition to the increasingly active role of Elon Musk in the policy and increased competition with which it is faced on the electric vehicle market, the brand removes the existing version of the Y model – its successful vehicle – before deploying the update,” he said.
“Brands like Tesla, which have a relatively limited range of models, are particularly vulnerable to recording reductions during the company of a model change.”
Tesla’s European drop is in the middle of broader changes in the global electric vehicle market, Chinese car manufacturers developing aggressively and inherited car manufacturers accelerating their production of electric vehicles. Byd, which has already exceeded Tesla in world income, set ambitious objectives, providing between 5 million and 6 million vehicle sales in 2025. Meanwhile, Volkswagen and BMW continue to increase their BEV production, further eroding Tesla’s advantage at the start.
The total number of BEV recordings across Europe increased by 25% in February, stressing that if Tesla sales are decreasing, the GLObal EV market continues to grow. This highlights a fundamental change in consumer preference – one that no longer turns around Tesla.
Tesla remains a dominant force on the world market for electric vehicles, but its decreasing influence in Europe raises questions on the question of whether it can support long -term growth in an increasingly competitive landscape.
Although Musk’s political controversies can alienate certain buyers, company challenges in Europe are also linked to market forces beyond its personal brand. Tesla rivals gaining momentum, analysts think that the company will have to rethink its European strategy, whether by price reductions, new models or an aggressive marketing push to find the lost ground.
