Tesla Faces Major Sales Decline in Europe Amid Rising EV Competition

Tesla's European sales fell 42.6% in early 2025, reflecting brand struggles, Elon Musk's controversies, and increasing competition from Chinese automakers like BYD.

Tesla's market share in Europe dropped to 1.8% in early 2025, with sales plunging 42.6% compared to the same period in 2024, despite a 28.4% rise in overall EV sales in the region.
Elon Musk's political affiliations, including support for Germany's far-right AfD party and his role in the Trump administration, have contributed to backlash and declining sales, particularly in Germany where sales fell by 76% in February.
Chinese automaker BYD surpassed Tesla in 2024 revenue, reporting $107 billion compared to Tesla's $97.7 billion, and continues to expand with groundbreaking technologies like ultra-fast charging.
Tesla's aging product lineup and delayed rollout of the refreshed Model Y have left it vulnerable to competition from newer, more affordable EVs from Chinese and European manufacturers.
Tesla's stock has partially rebounded after significant losses earlier in 2025, but it remains over 40% below its December 2024 value, as investors weigh the company's challenges in maintaining global leadership.