Electric vehicle sales in Europe are on the rise, with one notable exception – Tesla, the leading electric vehicle automaker, is experiencing a significant decline. This decline is particularly concerning as it comes at a time when the overall electric vehicle market in Europe is booming.
The European Automobile Manufacturers’ Association (ACEA) has released data showing that battery electric car sales have surged by almost 24% in the first quarter of 2025. Despite this growth, Tesla has seen a 37% drop in sales during the same period.
Some argue that the decline in Tesla’s sales is due to supply chain issues related to the Model Y changeover, but the data suggests otherwise. Even after the Model Y became available in March, Tesla’s sales continued to fall. This indicates a larger demand issue that goes beyond the Model Y transition.
Tesla fans are downplaying the situation, but if the trend continues, Tesla risks being squeezed out of the European market. Despite offering incentives such as free Supercharging and 0% interest on the Model Y, Tesla’s sales are still struggling.
It is crucial for Tesla to address this decline in sales and take steps to reverse the trend. Failure to do so could result in Tesla selling fewer than 200,000 vehicles a year in Europe starting next year. It is essential for Tesla to take this situation seriously and make strategic decisions to regain its market share in Europe.
