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Tesla’s global EV sales plummeted across Europe and China in April, arising due to pressure from Chinese competitors and a damaged brand caused by Tesla CEO Elon Musk’s political affiliations.
Declining Sales in Europe and China
Tesla sales from China-produced EVs declined 6% YoY in April, which marks the seventh month of consecutive declines. Deliveries of the Model 3 and Model Y made in China cars resulted in deliveries of 58,460 units, a 25.8% decrease from March, according to data from the CPCA (China’s Passenger Car Association).
Tesla sales in Europe plunged to multi-year lows where new cars in the UK and Germany fell 62% and 46% YoY. The total cars sold in Germany only amounted to 885 in April, which resulted in a YTD drop of more than 60%. Tesla car sales in the UK were 512, down from 1,352 YTD. ⁽¹⁾
Tesla’s market share has dropped as competitors dominate the markets in Europe and China, where Germany reported a 53.5% increase in EV sales while the UK reported an 8.1% rise. ⁽²⁾
Competitive Pressure from Chinese Rivals
A particular threat to Tesla comes from Chinese rival BYD. BYD reported a 19.4% YoY surge in global passenger car sales, around 372,615 units, in April. BYD’s Ocean and Dynasty models offering a mix of hybrid cars and EVs have also gained appeal.
During the auto show in Shanghai in April, new EV models debuted, many were priced in a competitive way to hurt Tesla’s best-selling Model Y’s appeal. Competitive pricing and advancements from Chinese EV manufacturers are damaging Tesla’s market share in China, its largest market in Q1 2025. ⁽³⁾
In Europe, BYD’s registrations in the UK increased by 311% to 1,419 vehicles in April, while European car manufacturers like Volkswagen saw a surge in battery-electric sales of 150,000 units. These gains highlight the growing appeal of many alternatives to Tesla’s offerings. ⁽⁴⁾
Tesla’s Damaged Brand and Political Controversy
Tesla CEO Elon Musk’s support for far-right political parties in Europe and his close ties with US President Trump have ignited controversy, which damaged Tesla’s brand reputation. Protests against Musk erupted across the US and Europe, with vandalism at Tesla charging stations and showrooms.
Because of Musk’s political ties, EV drivers in Europe are disregarding Tesla and switching to more EV alternatives, which has only added to the brand’s declining sales.
Strategic Responses to Market Challenges
To regain its appeal and counter its challenges, Tesla is trying to plan and execute several strategies. In China, the company plans to begin mass production of a lower-cost version of the Model Y in Shanghai in 2026, aiming to regain and defend its market position against affordable Chinese competitors like BYD.
Globally, Tesla is expanding into new markets such as India and Saudi Arabia, where Chinese EV brands are also planning expansions to reduce losses in Europe and the US. ⁽⁵⁾
In Europe, Tesla is preparing to launch a renovated Model Y, with deliveries expected to start in June 2025. However, it may take months for sales data to show changes whether this updated model can gain back customers.
Additionally, Musk has pledged to reduce his involvement in the Trump administration to focus on running Tesla, a move aimed at addressing the company’s recent struggles after missing first-quarter global sales and profit estimates. ⁽⁶⁾
