Despite the overall growth of the electric vehicle market in Europe, Tesla sales continue to fall rapidly. In May 2025, the American manufacturer lost almost a third of last year's sales in the European market.
According to Reuters with reference to the data of the European Automobile Association (ACEA), the sales of new Tesla cars in the region decreased by 27.9% in the annual dimension, while the total segment of electric trucks showed growth by 27.2%.
The fall of Tesla has been observed for the fifth month in a row. There are several reasons: the transition of customers to cheaper Chinese brands, increased competition, as well as the negative attitude towards the political statements and actions of Ilona Mask, which, according to some European buyers, have become toxic to the image of the company.
It is significant that the total sales of new cars in Europe increased by 1.9% in May. The main growth is recorded in the hybrid segment with recharge (PLUG-IN HYBRIDS) and cars on alternative fuels. In this dynamic growth, the share of Tesla fell from 1.8% to 1.2% per year.
European customers are increasingly choosing Chinese production models - they are more affordable, are actively supported by local subsidies and often have better characteristics in the budget segment. China's companies also receive support for their own government to enter foreign markets.
In response to a decline in demand, Tesla has repeatedly reduced prices, but this seems not enough to restore previous sales in Europe.
