Tesla is facing a sharp decline in its European sales, with new data revealing a staggering 49 percent drop in electric car registrations for January and February compared to the same period last year. According to the European Automobile Manufacturers’ Association (ACEA), only 19,046 Tesla vehicles were registered in the European Union in the first two months of 2025, reducing the company’s market share to a mere 1.1 percent.
In February alone, Tesla sales fell 47 percent, with just 11,743 units registered across the bloc.
Sales fall as electric vehicle market grows
Ironically, Tesla’s slump comes at a time when the overall electric vehicle (EV) market in Europe is expanding. ACEA data shows that total EV registrations jumped 28.4 percent to 255,489 units during the same two-month period, giving battery-powered cars a 15.2 percent share of the EU market.
While most automakers are benefiting from growing demand for zero-emission vehicles, Tesla appears to be losing ground rapidly.
Political controversy may be hurting Tesla
Industry analysts believe several factors are contributing to Tesla’s poor performance in Europe. One reason is the aging lineup of Tesla models, which now face stiff competition from newer EVs made by European, Chinese, and Korean rivals.
However, another growing concern is the political baggage attached to Tesla’s billionaire CEO, Elon Musk. Since taking on a highly publicized role as head of the newly formed U.S. Department of Government Efficiency (DOGE), Musk has sparked controversy over his close ties with former U.S. President Donald Trump.
His outspoken cost-cutting campaign and political commentary have drawn backlash globally. Several Tesla dealerships across the United States have been vandalized in recent weeks. The company’s stock price has also suffered, plunging significantly over the past month amid growing investor anxiety.
Speculation is growing that Musk’s alignment with Trump — who remains a divisive figure internationally — may be triggering a form of consumer protest in parts of Europe, where environmental values and political neutrality in business remain critical.
Tesla loses ground as hybrids surge
Meanwhile, other segments of the car market are experiencing strong growth. Hybrid-electric vehicles, in particular, dominated EU sales in the first two months of the year, reaching 594,059 units. This gave them a commanding 35.2 percent share of the total new car market.
Petrol-powered cars followed with a 29.1 percent market share, while diesel models continued their steady decline, falling to just 9.7 percent in February.
Calls for stronger EV support in the EU
Despite the jump in electric vehicle sales, ACEA Director General Sigrid de Vries cautioned that overall demand is still not strong enough to drive a full transition to zero-emission transport.
She emphasized the need for expanded tax incentives and direct subsidies for EV buyers. De Vries also called for more investment in public charging infrastructure, warning that slow progress in these areas could stall the EU’s climate goals.
At the same time, European lawmakers are considering relaxing some of the bloc’s strict emission-reduction targets to help struggling traditional automakers stay afloat.
Outlook uncertain for Tesla in Europe
Tesla’s rapid decline in Europe comes at a critical time for the global EV market. While the company remains a major player, especially in the U.S. and China, its European market position is increasingly fragile.
Without a clear plan to introduce new models, improve consumer trust, and separate the brand from political turbulence, Tesla risks losing its once-dominant position in the heart of the world’s most environmentally conscious car market.
