Tesla continues to lose ground in the European market, despite the company's optimistic forecasts. In April 2025, Tesla's electric vehicle sales in the EU, the UK and the European Free Trade Association countries fell by 49% compared to the same period last year. According to the European Automobile Manufacturers Association, the company registered only 7,261 new cars in the month - half the number in April 2024.
These figures look particularly alarming against the backdrop of the growth of the overall electric vehicle market: sales of electric cars in Europe increased by 26.4% in the first four months of 2025, and their market share reached 15.3%.
Tesla’s situation contrasts sharply with the success of Chinese automaker BYD. While Tesla lost almost half of its sales, BYD, thanks to its wide range of all-electric vehicles, saw sales grow by a record 169% over the same period.
Tesla's market decline is attributed to several factors. First, competition from European and Chinese manufacturers has increased significantly, and Tesla's lineup is not keeping up with market needs. Second, Elon Musk's reputation as the company's leader continues to deteriorate. His political activism, including his support for a German far-right party and his push for government spending cuts for the Trump administration, is causing a negative reaction in Europe.
Despite Musk's promises that the updated Model Y would help the company regain lost ground, these hopes have not been fulfilled. Even after the presentation of the updated version of the global bestseller, Tesla sales continue to fall.
Against this background, Tesla risks losing even more customers, as other manufacturers are actively expanding their offerings. If the company cannot find a solution quickly, its market position will only worsen. By the way, earlier there were rumors that the Tesla board of directors was looking for a replacement for Musk while he was helping Trump, but the company denied this information.