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).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataEuropean 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.
