Tesla’s sales in the European Union (EU) have seen a decline the fourth consecutive month as the US-based electric carmaker struggles to compete with Chinese rivals.

Tesla sold 7,261 cars in Europe in April 2025, down 49% year on year, according to the European Automobile Manufacturers’ Association (ACEA). 

This comes despite the overall rise in battery-electric vehicle (BEV) sales across Europe, which increased by 27.8%.

The decline in Tesla’s fortunes in the region is attributed to a combination of factors, including a backlash against CEO Elon Musk’s political views, a lukewarm response to the new Model Y, and increasing competition from European and Chinese manufacturers.

ACEA reported that overall car sales in Europe saw a marginal decrease of 0.3%, with electric and plug-in hybrid cars experiencing the strongest growth.

Tesla’s market share in Europe has halved from 1.3% to 0.7% over the past year.

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European carmakers are currently facing challenges such as cost-cutting measures, US tariffs on auto imports, and a slowing global economy.

Despite these challenges and the easing of US-China trade tensions, the future of the automotive sector remains uncertain.

In April, car sales in the EU, Britain, and the European Free Trade Association fell to 1.07 million, a decline after a 2.8% growth rate in March, according to ACEA data.

While Tesla struggles, other manufacturers like SAIC Motor and Mitsubishi have seen sales increases of 24.5% and 22.1%, respectively.

Conversely, Mazda experienced a 24.5% drop in sales.

Within the EU, excluding Britain and the EFTA, car sales have decreased by 1.2% this year, despite a surge in demand for electric vehicles.

BEV, plug-in hybrid (PHEV), and hybrid-electric (HEV) car registrations have risen by 26.4%, 7.8%, and 20.8%, respectively.

EVs now account for 59.2% of passenger car registrations in April, an increase from 47.7% the previous year.

Among the largest EU markets, Spain and Italy saw total car sales rise by 7.1% and 2.7%, respectively.

In contrast, sales in France and Germany fell by 5.6% and 0.2%, while Britain experienced a 10.4% decrease in registrations.

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