A Tesla sales centre in Innsbruck, Austria. The US-based electric car manufacturer faces declining European sales amid growing competition and controversies involving CEO Elon Musk.
Credit : Shutterstock, Kittyfly
Tesla isn’t off to a great start in Europe this year. Sales in January and February dropped by nearly half compared to the same months in 2024, which is especially surprising given Europe’s growing enthusiasm for electric vehicles.
In fact, while Tesla’s numbers dipped, EV sales across the continent jumped by over 28 per cent, according to recent figures from the European Automobile Manufacturers’ Association.
To put that in context, Tesla sold just 19,046 cars in the first two months of 2025—a sharp decline from the 37,311 vehicles sold during the same period last year.
How Elon Musk’s controversial politics impact Tesla’s brand image
But Tesla’s problems aren’t just about sales figures. CEO Elon Musk has been making headlines for all the wrong reasons, especially his recent support for Germany’s far-right Alternative for Germany (AfD) party. This move hasn’t gone down well in Europe, sparking criticism and even protests outside Tesla dealerships both in Europe and the U.S.
Musk’s past support of U.S. President Donald Trump and his often controversial statements online have further alienated some European buyers, who typically value sustainability and responsible corporate practices. Many now feel Musk’s personal politics clash with Tesla’s eco-friendly image.
BYD challenges Tesla with rapid growth and advanced EV technology
Tesla is also facing tougher competition than ever, particularly from Chinese automaker BYD, which recently announced record-breaking revenue of around £87 billion ($107 billion) thanks to a significant 40 per cent boost in electric and hybrid vehicle sales. BYD has also launched an ultra-fast EV charging system that’s nearly as quick as refuelling at a petrol station, posing a serious challenge to Tesla.
Adding to Tesla’s troubles, their highly anticipated Cybertruck continues to experience significant quality issues. With eight recalls already since its launch a little over a year ago—including a worrying problem with panels that can detach while driving—the Cybertruck is causing potential buyers to second-guess their choice.
If Tesla wants to bounce back in Europe, it will need to tackle its image problems and reassure customers about vehicle reliability.
