Tesla, once the undisputed leader of Europe’s electric vehicle (EV) revolution, is now facing a dramatic collapse in sales across the continent. Despite launching a refreshed Model Y—its most popular vehicle—the company’s registrations have plunged in nearly every major European market, raising serious questions about the future of the brand in the region, as shown by new reporting from Bloomberg.
In April, Tesla registered just 512 new vehicles in the UK, according to the Society of Motor Manufacturers and Traders. This figure represents a staggering 62% drop compared to the same month last year. The situation is even more dire in other key markets: sales in Denmark, the Netherlands, and Sweden have fallen by at least two-thirds, with Sweden seeing an 81% year-over-year decline. In France, sales dropped by 59%, while Germany—a country where EV adoption is booming—saw Tesla’s registrations fall by 46%. Even in Spain and Belgium, the company recorded declines of 36% and 55%, respectively.
These numbers are especially alarming given the broader context. The European EV market is not shrinking; in fact, it’s growing. In the UK, battery electric vehicle registrations rose by 8.1% in April, even as overall car sales declined. Germany saw a 53.5% increase in BEV sales year-over-year. Tesla’s sharp decline stands in stark contrast to these trends, suggesting that the problem is not with electric cars in general, but with Tesla specifically.
An electric vehicle parked in the outside. Image credits: Freepik.
Several factors are contributing to this downturn. Tesla’s product lineup, once seen as cutting-edge, is now facing stiff competition from both established European automakers and aggressive new entrants from China. The company’s decision to update the Model Y was meant to reinvigorate interest, but the rollout was hampered by production line changes at factories around the world—including the Berlin Gigafactory—which cost Tesla several weeks of output earlier this year. This disruption contributed to Tesla’s worst quarterly sales performance since 2022.
Musk is making enemies
However, the most significant headwind may be political. CEO Elon Musk’s increasingly public alignment with former US President Donald Trump and his administration’s hardline, isolationist policies have alienated many European consumers. Musk’s role as a top adviser to an administration engaged in global trade wars and rethinking alliances like NATO has further damaged Tesla’s image in a region that values international cooperation and environmental leadership. The sight of vandalized Teslas at anti-Musk protests in London has become a symbol of the brand’s fall from grace.
The financial markets have taken notice. Tesla shares fell as much as 1.9% before the start of regular trading following the latest sales data, and the stock is now down 42% from its record high in mid-December.
With a claimed annual capacity of 375,000 vehicles at its Berlin factory and a global capacity of 2.35 million cars, Tesla now faces the prospect of significant underutilization. In 2024, the company sold 1.8 million cars worldwide, but if the current trend continues, even that figure may be hard to match this year.
As European consumers turn to other brands and Tesla’s political baggage grows heavier, it’s clear that Elon Musk’s choices—both in the boardroom and on the world stage—are costing the company dearly. For entrepreneurs out there, one lesson is clear: moving from businessman to politician carries a high cost.
Sources:
- Bloomberg – https://www.bloomberg.com/news/articles/2025-05-06/tesla-sales-plummet-across-europe-even-as-new-model-y-ramps-up
- Ars Technica – https://arstechnica.com/cars/2025/05/tesla-sales-fall-by-62-in-the-uk-46-in-germany/
