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Tesla car sales in Europe continued to decline for four months straight, despite a rise in the European electric vehicle market. Industry sources, such as the ACEA, indicate a significant drop in Tesla’s new car registrations, with its main Chinese rival, BYD, gaining ground.
Tesla Car Sales in Europe
Tesla’s new car registrations in the European Union declined by almost 53% in April, with a total of 5,475 vehicles registered. In all of Europe, including the UK, Iceland, Norway, Switzerland and Liechtenstein, the decline was slightly less at 49%, with 7,261 vehicles registered. This marks the fourth consecutive month of year-on-year sales declines for Tesla, following drops of 36% in March, 47% in February, and 50% in January. ⁽¹⁾
The company’s market share in the region has also taken a hit, declining from 1.3% a year ago to 0.7% in April. Despite upgrades to its popular Model Y, Tesla’s brand image in Europe appears to be fading due to controversies surrounding CEO Elon Musk’s political involvement in the Trump administration. ⁽²⁾
Source: Reuters Chart Showing Tesla Sales and Market Share in Europe.
Competition Pressure from Chinese Rivals
Chinese electric vehicle (EV) manufacturers are dominating Europe’s EV industry. BYD beat Tesla in EV sales for the first time in April. BYD registered 7,231 new battery-electric vehicles (BEVs) last month, up 169% YoY, earning it a spot among the top 10 EV brands in Europe. BYD’s lead over Tesla was even more pronounced when plug-in hybrid sales were factored in. ⁽³⁾
Since Chinese EVs are gaining market share in Europe and forcing other European EV manufacturers to update their sales and profit projections, their success can be attributed to their competitive pricing. ⁽⁴⁾
Growth in the European EV Market
Despite Tesla’s struggles, the EV market in Europe is showing robust growth. ACEA data shows that battery-electric vehicle (BEV) registrations in the EU rose 26.4% between January and April compared to the previous year.
Hybrid-electric vehicles (HEVs) saw a 20.8% increase, while plug-in hybrid electric vehicles (PHEVs) grew by 7.8%. Electrified vehicles (BEVs, HEVs, and PHEVs combined) accounted for 59.2% of passenger car registrations in April, up significantly from 47.7% the previous year. ⁽⁵⁾
The surge in EV sales indicates high demand, driven by stricter emission targets and the availability of more affordable models.
Bottom Line
Tesla’s sales in Europe continue to drop due to Chinese rivals’ strengthening and a growing weakness in Tesla’s brand image.
European car manufacturing strives to cut domestic costs and tackle competition amid US tariffs on auto imports and a slowing global economy, with uncertainty rising in the industry’s outlook, despite eased US-China trade tensions and ongoing trade negotiations between the US and EU.
