Tesla sales in the European Union dropped sharply in the first two months of the year, as Elon Musk’s politics and outdated models may be driving consumers away.
According to the European Automobile Manufacturers’ Association (ACEA), Tesla’s new registrations declined by 49 percent to 19,046 units in the first two months compared to the previous year’s same period.
This decline occurred despite the EU’s overall electric vehicle sales increasing by 28.4 percent to 255,489 units during the same period, achieving a 15.2 percent market share.
Tesla faces increased competition from newer Chinese and European electric vehicles, whilst operating with older models.
The company’s European reputation has suffered due to Musk’s support for a German far-right party and his involvement with President Donald Trump’s administration, which has had strained relations with the EU.
Recent weeks have seen vandalism at various Tesla dealerships across the United States, alongside a substantial decrease in the company’s stock value over the past month.
In Germany, Europe’s largest automotive market, there have been multiple incidents targeting Tesla vehicles, with eight cars being set on fire since 2024 began.
These events followed Musk’s controversial public support for the Alternative for Germany (AfD) party during the recent general election. German Tesla sales decreased by 76 percent in February, following January’s 60 percent decline, according to official statistics.
While German electric vehicle sales generally decreased after government subsidy cancellation, Tesla’s decline contrasts with the sector’s overall recovery.
Despite upgrades to the popular Model 3 and Model Y, the vehicles maintain their original appearance. European consumers may have been deterred by reliability issues and the Cybertruck recall, despite the vehicle not being available in Europe.
ACEA data shows Tesla’s market share at 1.1 percent for January and February 2025, with February registrations dropping 47 percent to 11,743 units.
Despite a slight market share improvement to 1.4 percent in the following month, Tesla remained behind Chinese manufacturer SAIC’s MG brand of electric and hybrid vehicles.
The electric car market expanded in Germany, Belgium, and the Netherlands, while gaining momentum in Spain and Italy, the ACEA added.
(With input from agencies)