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In summary: While battery-electric vehicle sales in Europe are increasing, Tesla has experienced a nearly 50% decline in sales on the continent as consumers boycott the brand due to Elon Musk’s political actions. The company is also facing intensified competition from other brands and the aging of its vehicle lineup.
Recent data from the European Automobile Manufacturers’ Association (ACEA) indicates that Tesla sold 7,261 cars in Europe in April, representing a 49% decrease from the same month last year when sales reached 14,228 units. For the period from January to April, sales were down by almost 40%.
This decline means the EV leader’s market share has nearly halved, dropping from 1.3% a year ago to 0.7%.
Despite this, overall EV battery sales in Europe rose by 34.1% year-on-year to 145,341 new registrations last month.
Factors contributing to Tesla’s sales downturn include a backlash against CEO Elon Musk. Several public protests have emerged regarding his connections with Donald Trump and his role at the Department of Government Efficiency (DOGE). A Tesla dealership in Rome was notably set ablaze on March 31, resulting in the destruction of 17 cars, with an anonymous message attributing the act to “Musk’s fascist project.”
Tesla’s decreased sales in Europe can also be attributed to the absence of new mainstream models. The company has only introduced an upgraded version of the Model Y SUV this year, and the Cybertruck has yet to launch in the region.
Furthermore, there is a growing preference among Europeans for hybrid vehicles over fully electric models. Hybrids make up over 35% of the total European car market, while Tesla exclusively sells fully battery-operated cars. Increased competition from Chinese manufacturers like BYD, which has now surpassed Tesla in fully electric car sales in Europe, further complicates matters.
Concerns have arisen among Tesla investors regarding Musk’s time dedication to DOGE. Reports from the Wall Street Journal earlier this month indicated that Tesla’s board was seeking a successor for Musk, although this claim was categorically denied by both the company and Musk.
Musk has promised to significantly reduce his time on DOGE to devote “a day or two per week” to government-related matters and increase his focus on Tesla.
It has not been an encouraging month for Tesla. Recent reports revealed that Cybertruck sales have plummeted, prompting the company to accept trade-ins at steep depreciation rates. Moreover, Tesla has canceled the $16,000 Cybertruck range extender, likely owing to insufficient interest.
