Tesla sales plummet in Europe

Sales of products from the American EV manufacturer Tesla has fallen all across Europe by staggering margins.

A Tesla dealership.

The European Automobile Manufacturers' Association stated on Tuesday that Tesla sold a mere 5,475 vehicles in the month of April, down 52.6% from this same time last year. In the first four months of 2025, Tesla's sales in the European region plummeted by 46.1% compared with the first four months last year. This translates to just under 42,000 cars. Even worse for Tesla, the rival manufacturer BYD (a rising Chinese company) saw a large improvement in registrations of its vehicles all across Europe.

Tesla, for many years, has been the leading company in the electric vehicle industry globally, so why has Tesla begun to lose its dominance to smaller, lesser-known manufacturers? One thing is certain - ever since the 2024 election, the brand reputation of Tesla deteriorated. Elon Musk, the company's CEO and lead shareholder, got himself involved in controversial politics after endorsing Donald Trump in the 2024 election; he soon obtained a role in the federal government as chair of the Department of Government Efficiency (DOGE). His close ties with the Trump administration did not benefit his image globally, however, as many countries oppose the president's waging of trade wars and levying of tariffs that are crippling for the free trade status quo that has existed ever since the end of the Cold War. In fact, many Europeans have intentionally avoided buying from Tesla out of their own personal grievances with Trump and members of his administration.

Additionally, Tesla saw major competition globally, not just in Europe. Now more than ever, previously fully-gas or hybrid car companies have made the switch to electric with some vehicle models. Even worse, foreign competitors like China's BYD have been able to muster similar quality cars to Tesla at a much cheaper price - reflecting just how expensive American manufacturing is. Tariffs on foreign steel, aluminum, and other vehicle parts has not helped Tesla, either; they needed to mark up the prices of their vehicles in order to maintain their established profit margins, making the vehicles less accessible for Americans.