Tesla Has A Europe Problem – And It Is Not Getting Solved

Tesla, once the undisputed leader in Europe’s EV race, is now navigating choppy waters. According to the latest figures from the European Automobile Manufacturers’ Association (ACEA), Tesla’s new vehicle registrations in the EU fell nearly 53% in April compared to the same month last year. When factoring in the broader European region including the UK, Norway, and Switzerland—the drop is only slightly better, with a 49% decline. This marks the fourth straight month of year-on-year sales declines for Tesla in Europe, signaling a troubling trend for the American EV giant.

What’s particularly striking is that this steep drop comes during a time of expansion in the EU’s overall EV market. Battery electric vehicle (BEV) sales across the bloc rose by over 26% in the first four months of the year. That growth highlights Tesla’s increasingly isolated struggle in a region where consumer appetite for electric cars continues to climb.

Several factors appear to be fueling Tesla’s slide. One of the most visible is the growing backlash against CEO Elon Musk. His increasingly political public image—marked by vocal support for far-right figures in Germany and the UK, as well as his involvement in controversial U.S. political movements—has not gone unnoticed by European consumers. As in the United States, Musk’s behavior has sparked protests and public criticism, undermining Tesla’s once untouchable brand reputation in Europe.

At the same time, competition is heating up, particularly from Chinese manufacturers. In a significant symbolic shift, Chinese EV maker BYD outsold Tesla in Europe in April. The margin was slim—just 66 more BEVs sold—but the significance is enormous. Felipe Munoz, a global analyst at JATO Dynamics, described it as a “watershed moment,” noting how Tesla, the long-standing leader in Europe’s BEV sector, has now been overtaken by a brand that only officially expanded into most European markets in late 2022.

“This is a watershed moment for Europe’s car market,” said Munoz. “Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022.”

Tesla’s troubles are also reflected in its global performance. The company recently reported its first annual decline in global sales for 2024, and more alarmingly, the largest quarterly drop in Tesla’s history during Q1. That plunge led to a staggering 71% drop in net income for the quarter—underscoring that the headwinds Tesla faces are not limited to Europe alone.

Compounding matters, Tesla’s refusal to share monthly or region-specific sales data creates a sense of opacity around its actual market performance. The company did not respond to requests for comment regarding April’s sales slump, which only adds to growing uncertainty about its direction.

It’s also worth noting that Tesla’s model lineup consists solely of BEVs, whereas competitors like BYD offer a mix of fully electric and hybrid models. This broader product range gives rivals a distinct edge, particularly in markets where infrastructure or consumer preference hasn’t fully caught up with all-electric driving.