Tesla Sales in Europe Plunge 49% | Explore Key Factors

Tesla sales in Europe have shrunk by almost half since the beginning of the year

Tesla’s image is poor in many countries due to CEO Elon Musk’s political activities. This is apparently also reflected in Tesla sales figures; in Europe, sales recently fell by almost half.

Tesla is suffering from the “Elon effect” in Europe: on the continent. The electric car manufacturer’s sales figures shrank by almost half in the first two months of the year.

According to a recent report  by the European Automobile Manufacturers Association (ACEA), the company owned by controversial US presidential advisor Elon Musk recorded a 49 percent year-on-year decline in new registrations within the European Union in January and February 2025. This leaves the company with a market share of around 1.1 percent in the EU, with fewer than 20,000 Tesla cars sold there since the beginning of the year.

Tesla less in demand as a company car

In Germany, Tesla also brought significantly fewer vehicles onto the road in February than in the same month last year. According to the German Federal Motor Transport Authority (KBA), new registrations for the US company plummeted by a whopping 76 percent – ​​while new electric car registrations generally increased. In January, Tesla’s decline had already reached 59 percent. Tesla operates a factory in Grünheide, Brandenburg.

The automaker recently suffered severe damage to its image due to CEO Musk’s controversial role in the administration of US President Donald Trump . In the US and Europe , Teslas were set on fire and Tesla dealerships and charging stations were attacked.

Several German companies, Withdrew From Tesla:

In Germany, several German companies, including the drugstore chain Rossmann and several energy providers, withdrew from Tesla as a supplier of company vehicles , partly due to the tech billionaire’s proximity to right-wing extremists . Some Tesla drivers use stickers distancing themselves from Musk  . Numerous institutions, companies, and private individuals have also withdrawn from Tesla.

Tesla is also currently in lower demand in other regions of the world – for example, in China. The US automaker has also experienced significant weakness there recently. The Chinese company BYD, 
which is flooding the country’s market with affordable models , stands to benefit most from this .

Tesla sells only half as many cars in Europe

In January and February, the US automaker Tesla sold 19,046 cars in the EU, compared to 37,311 the previous year. Its market share was just over one percent.

In the EU, sales of electric car manufacturer Tesla fell by almost half in the first two months of this year compared to the previous year. This is according to figures from the European Automobile Manufacturers’ Association (ACEA) . According to the figures, Elon Musk ‘s company recorded a 49 percent decline in new registrations in January and February 2025 compared to the same period in 2024. 

Tesla sold 19,046 vehicles in the first two months of this year, compared to 37,311 in the same period last year. The electric car manufacturer’s market share thus declined from 2.1 percent to 1.1 percent. 

At the same time, the number of new registrations of electric cars in the EU increased significantly, according to the figures. New registrations of battery-powered vehicles rose by 28.4 percent in the first two months of the year compared to the same period last year. Hybrid vehicles saw an increase of 18.7 percent.

76 percent fewer new Tesla registrations in Germany

In Germany, Tesla brought significantly fewer vehicles onto the road in February than in the same month last year. According to the Federal Motor Transport Authority (KBA), the US company’s new registrations fell by 76 percent. In January, the decline had already reached 59 percent. Tesla operates a factory in Grünheide, Brandenburg .

Tesla’s reputation suffered severe damage due to CEO Musk’s role in the administration of US President Donald Trump. Recently, people in the US and Europe set fire to Teslas in protest and damaged the company’s car dealerships and charging stations .

In Germany, several German companies, including several energy suppliers and the drugstore chain Rossmann, had withdrawn from Tesla as a provider of company vehicles. Some Tesla drivers are now using stickers distancing themselves from Musk.

Massive slump in Germany too: Tesla sales in Europe halved

Elon Musk probably won’t be happy about this. Fewer and fewer people in Europe want to drive a Tesla. Sales are plummeting. In the first two months of the year, they fell by almost half.

This is according to figures published Tuesday by the European Automobile Manufacturers’ Association (ACEA). Specifically, Tesla’s new registrations fell by 49 percent year-on-year in January and February 2025. This corresponds to 19,046 vehicles sold and a market share of 1.1 percent.

Fewer Teslas on the road in Germany too

In Germany, Tesla brought significantly fewer vehicles onto the road in February than in the same month last year. According to the Federal Motor Transport Authority, new registrations of the US company plummeted by 76 percent – ​​while new electric car registrations generally increased. In January, Tesla’s decline had already reached 59 percent. Tesla operates a factory in Grünheide, Brandenburg.

In Germany, several German companies , including the drugstore chain Rossmann and several energy providers, withdrew from Tesla as a provider of company vehicles, partly due to the tech billionaire’s proximity to right-wing extremists . Some Tesla drivers use stickers distancing themselves from Musk. Numerous institutions, companies, and private individuals have also withdrawn from Tesla as a provider of company vehicles.

Electric car market in Europe: Things are going downhill for Tesla

Although car registrations are declining overall in Europe, sales of electric cars have recovered significantly. Tesla is not among those in the game. Sales of the controversial US automaker continue to slump.

Electric car sales in Europe improved again in February. According to data from the automobile manufacturers’ association ACEA, just over 131,000 new battery-electric vehicles were registered in the European Union, an increase of almost 24 percent. Growth in the first two months amounted to 28 percent, meaning the market share of electric cars recovered to 15 percent.

In contrast, registration numbers for gasoline and diesel vehicles plummeted by 20 and 28 percent, respectively, by the end of February. Their market share shrank by around ten percentage points to just under 39 percent. Overall, new registrations fell by three percent to 1.69 million vehicles in the first two months.

Tesla sales continue to collapse

However, the US manufacturer Tesla was unable to benefit from the positive industry trend for electric cars. In January and February, a total of around 19,000 Tesla vehicles were registered in the EU, a good 49 percent drop. 

In recent months, in light of Tesla CEO Elon Musk’s political activities in the new US administration , companies have repeatedly publicly disposed of Teslas from their fleets . However, experts also point out that the recent sales slump could also be related to a production shift at Tesla. The announcement of the now available facelift of the Model Y certainly played a role. Furthermore, other manufacturers have caught up in terms of technology.

EU wants to relieve car manufacturers

Despite the improvement in demand for electric cars, the EU’s targets for CO2-emissions-free vehicles are not being met, said ACEA Managing Director Sigrid de Vries. This means that car manufacturers face fines that would be incurred if they fail to achieve a sufficiently high level of electric car sales. The manufacturers had demanded concessions from the EU Commission in this regard. The financial burden is hitting the industry at a difficult time. The reason for the sluggish turnaround is demand, not a lack of supply.

The Commission intends to introduce a legislative amendment on Tuesday so that car manufacturers have to achieve the reduction targets for CO2 emissions from new car fleets within three years instead of this year. However, this would also be necessary, the industry association demanded.

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Sources used:

• With material from the News agencies  dpa and AFP, ntv.de, Reuters news agency, BBC News and CNN reports. The content has been independently analyzed and rewritten to provide original insights.

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