Tesla, once the undisputed leader of the electric vehicle revolution, is rapidly losing ground in Europe. Despite its global stature as a top EV manufacturer, Tesla’s dominance is unraveling across key European markets where local buyers now have abundant, often more appealing, alternatives. The brand’s aging vehicle lineup and polarizing CEO Elon Musk are turning once-loyal customers away.
Sales figures paint a bleak picture. In April, Tesla’s sales nosedived 81% in Sweden, marking the lowest numbers since October 2022. Similar trends were seen in the Netherlands (down 73.8%), Denmark (67%), and France (59%). Even in Portugal, where the drop was less dramatic, a 33% decline is hardly a win. These sharp declines come despite Tesla’s release of the refreshed Model Y, the carmaker’s former European bestseller, which now struggles to maintain its appeal.
Worse still, the broader market is thriving without Tesla. In the first quarter of 2025, EV sales in the European Union rose by 23.9%, yet Tesla’s sales plunged 45%, dropping its market share from 2.4% to just 1.3%. When factoring in the wider European region, including the UK and EFTA countries, Tesla’s Q1 sales fell by 37.3%, while overall EV sales grew 28%.
Globally, Tesla is in retreat. In the U.S., its Q1 sales dipped 8.6% as the overall market climbed. And 2024 saw Tesla post its worst delivery figures in over two years—a 13% year-over-year decline.
The company’s future may hinge on its elusive affordable EV, potentially arriving soon. Whether it’s a budget-friendly Model Y variant or a controversial robotaxi, Tesla desperately needs a fresh breakthrough to reverse its decline. Until then, the European death spiral shows no signs of slowing.
