Tesla's European Sales Decline for Fifth Consecutive Month
In a striking trend, Tesla's new car sales across Europe have plunged for the fifth straight month, shedding nearly 28% year-on-year in May. The latest figures reveal the U.S.-based electric vehicle (EV) giant delivered just 13,863 units in the combined markets of the European Union, Britain, and the European Free Trade Association.
Market Share Takes a Hit
Alongside declining sales, Tesla's market presence in Europe shrank from 1.8% in May 2024 to a modest 1.2% this May, signaling mounting challenges in the region. This downward trajectory is attributed not only to intensifying competition but also to the tarnishing of Tesla's brand image.
Brand Struggles Linked to CEO's Controversial Moves
Much of Tesla’s struggle can be traced to CEO Elon Musk’s polarizing political involvement and outspoken rhetoric. Musk invested nearly $300 million in support of former U.S. President Donald Trump’s re-election campaign and spearheaded aggressive efforts to reduce federal agencies’ scope. These moves ignited protests outside Tesla dealerships across Europe, further denting the company’s reputation.
After a public falling-out with Trump, Musk distanced himself from the former administration, but the damage to Tesla’s European standing had already taken root.
Chinese EV Makers Surge in Europe Despite Tariffs
Amid Tesla's slide, Chinese EV manufacturers are capitalizing on growing demand for affordable electric vehicles across Europe. Last month alone, Chinese brands sold 65,808 units, more than quadrupling their market share to 5.9%. This surge persists even though the European Union has imposed tariffs on vehicles imported from China.
Among these Chinese rivals, BYD stands out by reportedly outselling Tesla in pure electric car sales in Europe for the first time, signaling a powerful shift in consumer preference.
Facing Rising Competition and Uncertain Outlook
Tesla is not only battling emerging Chinese contenders but also long-established European automakers ramping up their electric offerings. Expectations were high for the revamped Model Y compact SUV to revive Tesla’s fortunes in Europe, especially after its initial success in markets like Norway. Yet, this has not fully translated to a regional turnaround.
With brand perception challenges and more affordable, competitive EV options crowding the market, Tesla’s dominance in Europe faces growing uncertainty.
