Tesla Faces Sharp Sales Decline in Europe Amid Rising Competition and Controversy

Tesla’s sales in Europe have taken a steep dive, dropping by more than half last month even as the region’s overall electric vehicle market continues to grow.

According to data released Tuesday by the European Automobile Manufacturers’ Association (ACEA), Tesla’s new vehicle registrations across the European Union fell nearly 53% in April compared to the same month last year. When including the broader region—covering the UK, Norway, and Switzerland—sales declined by 49%.

This marks Tesla’s fourth consecutive month of declining annual sales in Europe and highlights the challenges the automaker is facing. These include consumer backlash tied to CEO Elon Musk’s political involvement and growing competition from Chinese electric vehicle manufacturers.

Musk’s controversial support for far-right political candidates in Germany and the UK, along with his close ties to former US President Donald Trump’s administration, have sparked protests and boycotts in Europe, similar to reactions in the United States.

April also saw Chinese rival BYD surpass Tesla in European battery electric vehicle sales for the first time. BYD sold just 66 more BEVs than Tesla that month, but industry experts view this as a significant turning point. Felipe Munoz, a global analyst at JATO Dynamics, called it a “watershed moment” since Tesla has long dominated the European BEV market, while BYD only expanded beyond Norway and the Netherlands recently.

Despite Tesla’s decline, the European electric vehicle market has expanded rapidly. New battery electric vehicle sales in the first four months of 2025 grew by over 26%, according to ACEA. Unlike Tesla, which sells only battery-electric vehicles, many competitors, including BYD, offer both battery-powered and hybrid models.

Tesla does not disclose monthly or regional sales figures and did not respond to requests for comment on the latest numbers.

This recent slump follows Tesla’s report of its first annual global sales drop in 2024 and the largest quarterly decline ever recorded during the first quarter of the year, which also led to a 71% drop in net income.

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