Tesla Sales in the European Union Plunge 49% in Early 2025

Brussels (Eurotoday) – According to auto industry figures released Tuesday, Tesla sales dropped in the European Union in the first two months of the year due to Elon Musk’s politics and ageing models driving consumers away.

In January and February, new Tesla registrations dropped by 49 percent to 19,046 compared to the same months last year, as reported by the European Automobile Manufacturers’ Association (ACEA).

The plunge came despite a 28.4 percent growth in overall electric car sales in the European Union over the same two-month span to 255,489 units, for an EU market share of 15.2 percent.

Tesla’s older models are facing growing competition from newer Chinese and European automobiles. However, the brand’s reputation in Europe has suffered due to Musk’s support for a far-right party in Germany and his significant involvement in President Donald Trump’s administration, which has strained relations with the EU.

In recent weeks, numerous Tesla dealerships across the United States have experienced vandalism, coinciding with a significant drop in the company’s stock price this past month.

How is Elon Musk’s political stance affecting Tesla’s reputation?

Elon Musk caused controversy in Germany after he vocally backed the far-right Alternative for Germany (AfD) party in the recent general vote. Tesla sales dropped by 76 percent in Germany in February after falling by almost 60 percent in the previous month, according to official figures.

Electric vehicle sales in Germany declined last year following the government’s withdrawal of a subsidy programme, but Tesla’s slump contrasted with a recovery in the broader sector.

In February, Tesla’s registrations dropped by 47 percent to 11,743. While its market share saw a slight increase to 1.4 percent, it still lagged behind Chinese competitor SAIC, the manufacturer of electric and hybrid vehicles under the MG brand.

What challenges does Europe’s EV market still face?

According to the ACEA, the electric vehicle market has expanded in Germany, Belgium, and the Netherlands, and is beginning to gain traction in Spain and Italy. Although there has been progress, ACEA director general Sigrid de Vries stated that the most recent figures

“confirm that market demand for battery electric vehicles remains below the level needed for the transition to zero-emission mobility to progress.”

She highlighted the necessity for tax and purchasing incentives for customers, along with investments in charging stations, particularly as the EU plans to relax emission reduction targets for struggling automakers in Europe.