Asger Risom
Tesla’s troubles in Europe deepened in May, with sales plummeting nearly 28% compared to last year. This marks the fifth straight month of decline, even as overall demand for electric vehicles surged across the continent.
Europe’s electric vehicle market is booming—but not for everyone. As demand accelerates and competition stiffens, Tesla is showing signs of strain in one of the world’s most important EV battlegrounds.
While overall car sales continue to rebound and fully-electric vehicles gain ground, Tesla is bucking the trend in the wrong direction. The company that helped define the EV revolution is now facing
Chinese brands and hybrids gain ground
Tesla’s market share in Europe fell to 1.2% in May, down from 1.8% a year earlier, Reuters reports.
Chinese EV makers, led by BYD and SAIC Motor, continued their strong momentum. BYD came close to matching Tesla’s monthly sales, having already surpassed it in April.
Chinese automakers sold 65,808 cars across Europe last month, doubling their market share to 5.9%—this despite new EU tariffs targeting Chinese electric vehicles.
Meanwhile, plug-in hybrids and cars powered by alternative fuels also saw increased demand. Registrations for hybrids rose nearly 20%, and plug-in hybrids gained 15% year-on-year.
Tesla’s Model Y refresh yet to deliver
The updated Model Y was intended to rejuvenate Tesla’s European appeal, but the results have yet to materialize.
Industry analysts cite growing price sensitivity, with buyers favoring lower-cost options from China, as well as reputational backlash related to CEO Elon Musk.
In total, car sales across the EU, UK, and EFTA countries reached 1.11 million in May, a 1.9% increase overall. EU-only figures show a year-to-date dip of 0.6%, despite surging interest in electrified vehicles.
BMW and SAIC both posted gains—up 5.6% and 22.5% respectively—while Mazda sales fell sharply by 23%.
Among Europe’s largest markets, Spain saw an 18.6% rise, Germany ticked up 1.2%, but France and Italy both recorded declines.
As Tesla’s slump persists and rivals ramp up, the EV race in Europe is entering a fiercely competitive phase.
