Tesla Europe sales drop sharply in February, down 40.1% compared to the same month last year. The company sold 16,888 vehicles across the EU, UK, and EFTA regions, facing slower demand and more rivals entering the market.
So far in 2025, Tesla’s regional sales have fallen 42.6%. Its market share also shrank from 2.8% to 1.8%, according to data from the European Automobile Manufacturers’ Association (ACEA).
While overall battery electric vehicle registrations in Europe rose 26.1% year-over-year, Tesla lagged behind. Chinese EV makers like SAIC saw strong gains during the same period. Battery EVs held a 15.2% share of total car sales, with hybrids leading at 35.2% and petrol cars at 28.6%.
The Tesla Europe sales drop happened even as other automakers Volkswagen, BMW, and Renault posted better numbers. Europe’s car market shrank by 2.6% in February, but Tesla’s decline was far steeper.
Analysts point to Tesla’s aging vehicle lineup and rising competition, especially from lower-priced Chinese EVs. Tesla is expected to roll out an updated Model Y, and reports say the company may cut its price by 20% to attract more buyers.
Tesla also faces growing backlash linked to CEO Elon Musk’s political views. His support for far-right parties in Europe and ties to Donald Trump have led to protests and vandalism targeting Tesla locations.
Outside Europe, demand in the U.S. and China also remains weak. Internally, Musk urged employees to hold onto their stock, as Tesla’s share price has dropped more than 26% this year.
