Tesla‘s European sales of electric vehicles have taken a steep decline, plummeting by 49% in January and February 2025 compared to the same two months of the previous year.
According to new data from the European Automobile Manufacturers’ Association (ACEA) released on Tuesday, March 25, the decline has sparked concern about Tesla’s position in the rapidly evolving EV market. While some of Tesla’s struggles are because of an aging lineup of models, industry observers say CEO Elon Musk’s political stance is also hurting.
Musk, an early and vocal supporter of U.S. President Donald Trump, has come under fire since his own hiring as head of the newly minted Department of Government Efficiency, which is leading charge-cutting efforts aggressively. The outrage has led to vandalism of Tesla dealerships across the country and a significant dip in the company’s stock price. Some electric car buyers may be boycotting the brand in response to Musk’s politics, further obscuring Tesla’s sales outlook.
Tesla’s market share in the European Union dropped to a low of 1.1% in early 2025, with new registrations dipping to 19,046 units. February alone saw a 47% drop in Tesla sales, with just 11,743 units registered. The decline is particularly stark given that overall EV sales in the EU increased by 28.4% during the same period, registering 255,489 units and a 15.2% market share.
ACEA Director General Sigrid de Vries acknowledged the issues facing the sector:
“The latest new car registration figures confirm that market demand for battery electric vehicles remains below the level needed for the transition to zero-emission mobility to gain traction.”
She placed tax incentives and more comprehensive charging networks at the top of the list to assist automakers, especially with the EU debating easing emission-reducing targets to support struggling carmakers.
While Tesla sales fell, hybrid-electric cars experienced a huge surge, with the segment emerging as the largest in the market with 594,059 registrations in the opening two months of 2025— equal to a 35.2% market share. Meanwhile, petrol and diesel cars continued losing ground, with market shares of 29.1% and 9.7%, respectively, in the last month.
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