Mathias Busekist
It’s not looking good.
Tesla’s lead in the European electric vehicle market is fading rapidly. The American company’s EU sales decreased by over 50% in April, even as the overall electric auto market in the region kept growing
In figures published Tuesday by the European Automobile Manufacturers’ Association (ACEA), new Tesla registrations within the European Union decreased by nearly 53% year over year in April.
The overall European market — which includes the United Kingdom, Norway, and Switzerland — experienced a 49% decrease in Tesla sales over the same time frame. This is the fourth month in a row that year-over-year sales have decreased at Tesla in Europe, highlighting increasing troubles for the firm.
The fall comes amidst increasing political scrutiny of CEO Elon Musk, along with accelerating competition from Chinese electric vehicle producers. Musk’s recent political actions, ranging from endorsing far-right politicians in Germany and the UK to participating in proposals to redesign the U.S. federal workforce under Donald Trump, have incensed European consumers.
Protests and boycotts have been on the rise, damaging Tesla’s brand image in the region. At the same time, there is increased competition. Chinese manufacturer BYD, which has expanded so fast in Europe since 2022, overtook Tesla in sales of battery electric vehicles (BEVs) in the region for the first time in April, based on a study by market watcher JATO Dynamics.
The margin was small – BYD sold 66 more BEVs than Tesla – but analysts argue the symbolic value is considerable.
“This is a turning point point in Europe’s automotive market,” commented Felipe Munoz, a global analyst at JATO Dynamics.
“Tesla has been dominating Europe’s BEV market for a very long time, whereas the presence of BYD in markets outside of Norway and the Netherlands is very recent.”
Tesla’s European sales downturn comes even as there has been sustained growth in the EV market on the continent.
Data from ACEA indicates that EU-wide sales of BEVs jumped by over 26% between the first four months of 2025. As compared to others like BYD that produce battery and hybrid models, Tesla focuses exclusively on BEVs, which explains why the fall is so dramatic.