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3w ago

Tesla and Volvo Struggle in Europe as Chinese EV Makers Surge

Tesla's European sales plummet while XPeng and BYD rapidly expand their market share, highlighting shifting dynamics in the region's EV market.

A person smashes a Tesla car, donated anonymously and destined for scrap during a stunt organised by the group Everyone Hates Elon, part of a campaign against Tesla CEO Elon Musk’s political involvement in the U.S. government, in London, Britain, April 10, 2025. REUTERS/Hannah McKay/File Photo
The Tesla logo is seen at the Everything Electric, the Home Energy & Electric Vehicle Show, in London, Britain, April 16, 2025. REUTERS/Maja Smiejkowska/File Photo
A Tesla electric vehicle is parked at a Tesla dealership, after Tesla, Inc. released its financial results for the first quarter of 2025, in Berlin, Germany April 23, 2025. REUTERS/Annegret Hilse

Overview

  • Tesla's European sales dropped 37% in the first four months of 2025, with April declines reaching 81% in Sweden and 62% in the UK, attributed to political backlash and aging models.
  • Volvo reported an 11% global sales decline in April, led by a 32% drop in electric vehicle sales, exacerbated by U.S. tariffs on Chinese imports impacting its supply chain.
  • Chinese manufacturers XPeng and BYD are gaining momentum, with XPeng's Norway sales up 190% year-over-year and BYD's UK sales surging 654% in April 2025.
  • While Europe's overall EV market grew 23.9% in Q1 2025, Tesla and Volvo are losing ground to competitors offering more affordable and technologically advanced models.
  • Europe's stringent emissions targets and incentives are accelerating EV adoption, but regional variations in demand and political factors are reshaping the competitive landscape.