Tesla sales have dramatically reduced across Europe; last month, sales dropped by over 45%. This reduction comes at the same time as consumers are increasingly disappointed with Elon Musk’s more controversial political stances and high-profile role in Donald Trump’s presidency. These factors are increasingly contributing to consumers’ dissatisfaction with purchasing decisions.
Based on Jato Dynamics data, the Texas-based electric car behemoth sold less than 16,000 vehicles in 25 European countries, such as the UK, Norway, and Switzerland. This is a dramatic drop of 44% from the same time last year. The firm’s market share in February fell to 9.6%, the lowest it has been during the month in the past five years. A corresponding decline of 45% was also registered in January, with sales falling from 18,161 units in 2024 to merely 9,945.
While overall sales were in decline, Tesla’s sales in the UK were a little more upbeat. The Society of Motor Manufacturers and Traders counted almost a 21% lift in registrations for new Teslas in February. The Model 3 and Model Y were especially favored, coming in as the second- and third-best-selling models after the Mini Cooper.
Investors and market analysts have been analyzing to what degree the outspoken political beliefs of Musk may be impacting the market performance of Tesla. Musk, as CEO of Tesla, has been an outspoken supporter of Trump and has made positions that have incurred public criticism. His vocal endorsement of Germany’s far-right AfD political party, publicity-stunt arrest over a “chainsaw of democracy” at a right-wing gathering, and allegations against UK politicians about a high-profile crime case have all served to generate surrounding controversy. This has resulted in demonstrations outside Tesla showrooms and increasing worries over brand reputation.
Nonetheless, specialists indicate that Tesla’s falling sales are not directly linked to Musk’s political campaigning. The firm is right now undergoing a major shift, especially with the phasing out of the current Model Y for a revised one.
Felipe Muñoz, a Jato Dynamics global analyst, said that Tesla is going through a time of significant transformation. “In addition to Musk’s increasing involvement in politics, Tesla is also confronting growing competition in the electric vehicle space. The brand’s dependence on a narrow model lineup makes it especially susceptible to sales volatility during model changes,” he said.
In the meantime, Tesla’s competitors are taking advantage of this opportunity to increase their foothold in Europe. Volkswagen recorded a staggering 180% jump in sales of electric vehicles, selling just under 20,000 units. BMW and Mini together sold around 19,000 electric cars over the same period.
Chinese carmaker BYD has been particularly on the attack in Europe, reporting a 94% sales hike to more than 4,000 vehicles last month. Its global performance has also been outstanding, with its revenue passing $100 billion (£83 billion) in 2024, formally surpassing Tesla as the globe’s largest electric vehicle maker by revenue.
BYD previously beat Tesla in global yearly revenue in 2018, but its recent financial reports demonstrate its ongoing rise. The firm recorded 777 billion yuan (£86 billion) in revenue in 2024, a 29% increase year on year, above estimates. Tesla, meanwhile, posted yearly revenue of $97.7 billion during the same time.
While Tesla holds a slight advantage over BYD in straight electric vehicle sales—1.79 million to 1.76 million in 2024—BYD’s volume rises considerably when hybrid models are included. The Chinese company sold 4.27 million vehicles last year, almost on par with Ford’s 4.5 million sales. It has aggressive goals for 2025, forecasting sales between 5 million and 6 million units.
Polestar, the electric vehicle marque supported by Volvo’s parent firm Geely, also showed strong growth. It achieved an 84% sales gain, exceeding 2,000 units in Europe in the last month.
These shifts in market forces have strained Tesla’s shares. Following a significant stock price drop of more than a third in 2025, the company is currently worth $780 billion. However, Monday’s 6% rise in its shares was underpinned by gains in the overall market, as the Nasdaq index gained around 2%.
In February, the combined sales of automobiles in 25 EU markets, the UK, Norway, and Switzerland fell by 3% to 970,000 units. However, in spite of Tesla’s recent woes, battery electric vehicle (BEV) registrations increased by 25%, showing the growing application of electric vehicles.