Tesla’s Europe Sales Drop Nearly 45%

Tesla is facing a significant slump in European sales, with new car registrations plummeting in February. The decline comes amid growing competition in the electric vehicle (EV) sector and concerns over Elon Musk’s increasing political involvement.

The Texas-based EV giant sold fewer than 16,000 vehicles in Europe last month, representing a staggering 44% drop across 25 markets, including the UK, EU countries, Norway, and Switzerland. This sharp decline follows a 45% sales drop in January compared to the previous year. As a result, Tesla’s market share dipped to 9.6%—its lowest for February in five years.

Despite the overall downturn, the UK presented a different picture, with the Society of Motor Manufacturers and Traders reporting a nearly 21% rise in Tesla registrations. The Model 3 and Model Y remained strong sellers, ranking second and third behind the Mini Cooper.

The sales decline has sparked discussions about the potential impact of Musk’s controversial political affiliations. As a prominent figure in Donald Trump’s administration, Musk has made headlines for his support of Germany’s far-right AfD party, wielding what he called a “chainsaw for bureaucracy” at a conservative event, and accusing UK Prime Minister Keir Starmer of covering up grooming scandals. These actions have reportedly led to a backlash among some Tesla customers and triggered protests outside Tesla dealerships.

However, market analysts argue that Tesla’s sales volatility isn’t solely tied to Musk’s political activities. Jato Dynamics analyst Felipe Muñoz noted that Tesla is undergoing a major transition, including phasing out the current Model Y ahead of an upcoming redesign. “Brands like Tesla, which have a relatively limited model lineup, are particularly vulnerable to registration declines when undertaking a model changeover,” Muñoz explained.

Meanwhile, Tesla’s competitors have surged ahead. Volkswagen saw a 180% increase in battery electric vehicle sales, while BMW and Mini collectively sold 19,000 EVs in February. Chinese automaker BYD recorded a 94% rise in European sales, surpassing 4,000 units, and reported annual revenues of £86 billion, beating analyst expectations and positioning itself as Tesla’s closest global rival.

BYD’s aggressive growth strategy has led to sales figures nearly matching Tesla’s, with 1.76 million EVs sold in 2024 compared to Tesla’s 1.79 million. When hybrid models are factored in, BYD’s total vehicle sales exceeded 4.27 million last year, nearly on par with Ford’s 4.5 million.