Tesla is facing sharp declines in sales across Europe, even as demand for electric vehicles (EVs) grows across the continent. New data shows Tesla’s April sales dropped steeply in several key markets, adding to a string of setbacks for the EV giant led by Elon Musk.
Sales Plummet Despite EV Growth
In the UK, Tesla’s April sales fell by 62%, according to data from the Society of Motor Manufacturers and Traders (SMMT), despite an 8% rise in overall EV sales. The pattern was repeated elsewhere: Tesla sales dropped 67% in Denmark, 74% in the Netherlands, and 33% in Portugal. In Sweden, sales fell a staggering 81%, while in France they were down 59%, according to trade groups and figures reported by Reuters.
This follows a broader trend in the first quarter of 2025, when Tesla saw a 36% year-over-year drop in European sales, even as overall EV sales in the region rose 24%, according to the European Automobile Manufacturers’ Association.
Backlash Over Musk’s Politics
Industry experts and analysts say the sharp decline is driven by a combination of factors. One is rising competition—particularly from Chinese automaker BYD, which is on track to overtake Tesla as the world’s largest EV manufacturer. But another factor may be Tesla CEO Elon Musk’s growing political profile, which has sparked controversy and backlash across Europe.
Musk has drawn criticism for publicly supporting far-right political figures in Germany and the UK. His previous role advising the Trump administration and threats from U.S. officials to impose steep tariffs on European imports may have further soured Tesla’s image among European consumers.
Outlook Remains Grim
Tesla does not break out regional sales in its earnings reports and has not commented on its April performance. However, analysts are increasingly bearish on the company’s near-term prospects. GLJ Research analyst Gordon Johnson said, “In short, the second quarter of 2025 is (again) shaping up to be a disaster of a quarter for Tesla, following the disaster that was the first quarter.”
Tesla’s recent global results show the strain: the company reported its first annual sales decline in 2024 and suffered the largest quarterly drop in sales in its history during Q1 2025. Net income plunged 71%, with Tesla relying heavily on the sale of regulatory credits to report a profit.
With sales declining in both the U.S. and Europe and no updated guidance on 2025 sales volumes, Tesla faces mounting pressure to reset its strategy amid intensifying competition and reputational challenges.
