Tesla sales in Europe have dropped heavily, falling behind the numbers posted by Volkswagen, BMW, and several Chinese competitors. According to data from JATO Dynamics, Tesla sold fewer than 16,000 cars in February, marking a steep 44% decline compared to the same period last year. This has reduced Tesla’s market share to 9.6%, its lowest in five years. Meanwhile, competitors like Volkswagen and BMW have gained momentum. Volkswagen’s EV sales surged by 180% to nearly 20,000 units, while BMW, including its Mini brand, sold close to 19,000 electric cars.
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Elon Musk’s Political Controversies Impacting Tesla Sales In Europe?
A major factor behind Tesla’s struggles in Europe is Elon Musk’s growing political involvement. His open support for far-right parties, including Germany’s Alternative für Deutschland (AfD), has alienated many European consumers. With Musk frequently using his platform, X (formerly Twitter), to promote controversial political views, Tesla is now facing a loyalty test among European buyers.
Rising Competition from Legacy and Chinese Automakers
Tesla is also facing intense competition from both traditional automakers and new players in the EV market. Volkswagen and BMW have aggressively expanded their EV production, attracting more customers. At the same time, Chinese brands like BYD, Polestar, Xpeng, and Leapmotor are making strong inroads into Europe. BYD (one of Tesla’s strongest competitors globally) saw a 94% increase in sales, delivering over 4,000 units in February, while Polestar grew by 84%, selling more than 2,000 vehicles. Xpeng sold over 1,000 cars, and Leapmotor delivered nearly 900 units.
Phasing Out Model Y Has Slowed Down Sales
Another reason for the decline in Tesla sales in Europe is the decision to phase out the current version of its best-selling Model Y to make way for an upgrade. This transition has slowed down new registrations. Additionally, Tesla’s relatively small lineup of electric vehicles makes it more vulnerable to fluctuations in demand, especially when a key vehicle undergoes changes.
European EV Market Continues to Grow
Despite Tesla’s struggles, the European EV market remains on an upward trajectory. While overall car sales fell by 3% in February, battery electric vehicle registrations increased by 25%. With Volkswagen, BMW, and Chinese automakers gaining market share, Tesla faces an uphill battle to maintain its foothold in the European market.
Data Source: JATO Dynamics
