Tesla’s European Sales Plummet
Tesla’s turnover fell by more than half in the European Union last month, despite the entire bloc’s electric car market increasing. New registrations for Tesla vehicles in April fell by almost 53% compared to the same month in 2024, according to data published by the European Automobile Manufacturers’ Association (ACEA).
Causes of Decline
The car manufacturer is facing problems on two major fronts: backlash from consumers over the politics of CEO Elon Musk and increased competition from Chinese electric vehicle (EV) makers. Musk’s support for right-wing political candidates in Germany and Great Britain, as well as his role in the second administration of US President Donald Trump, have sparked outrage and protests in Europe.
Rise of Chinese Competition
April was also the first time that Chinese rival BYD outsold Tesla in Europe, with BYD selling 66 more battery electric vehicles (BEVs) than Tesla, according to data from Jato Dynamics, a research company. This milestone marks a significant shift in the European car market, where Tesla has long dominated the BEV market.
Impact on Tesla
The decline in sales has arrived at a time when the wider EV market in the bloc is expanding. In the first four months of the year, sales of new BEVs increased by more than 26%, according to ACEA. In contrast, many competing car manufacturers, including BYD, sell a mix of battery-operated and hybrid EVs. Tesla does not report monthly sales and does not break down sales by market.
Financial Consequences
The data follows Tesla’s report of the first decline in annual global sales for 2024 and the largest decline in quarterly global sales in history in the first quarter, resulting in a net loss of 71% in the quarter. Tesla did not respond to a request for comment on its sales last month.
