Tesla’s sales in the European Union have experienced a significant decline despite a broader rebound in demand for electric vehicles (EVs) across the continent. According to industry figures, only 36,167 Teslas were sold in the EU during the first quarter of 2025, representing a 37% decrease compared to the same period last year.
This downturn comes as overall EV sales in the EU accelerated, rising by 24% to 412,997 units, as reported by the European Automobile Manufacturers Association (ACEA). The contrast between Tesla’s performance and the overall EV market growth presents a fresh challenge for Elon Musk as he attempts to revitalize the company amid a wider sales slump.
Critics have argued that Musk’s vocal support for Donald Trump and the US president’s Department of Government Efficiency (Doge), which he helped establish on a voluntary basis, has endangered Tesla’s brand. This political involvement has angered some of Tesla’s liberal-leaning customers, leading to boycott campaigns and even arson attacks by extreme protesters.
The decline in Tesla’s sales occurs against a backdrop of improving EV sales in Europe, which contrasts with a bleaker overall car market in the EU. Combined sales of all car types fell by 2% between January and March. While EV and hybrid sales rose by 24% and 21% respectively, sales of petrol and diesel cars dropped by 21% and 27%.
The recovery in electric car sales, showing growth of 24% compared to just 3% the previous year, included strong performances in major markets such as Spain, Germany, Italy, and Austria. However, France was an outlier, experiencing a 6.6% decline in EV sales following the scaling back of EV subsidies late last year.
Despite the growth in EV sales, the ACEA warned that the market share of electric cars, at 15%, remains “far from where it was expected to be” as the EU prepares to introduce new vehicle emission regulations. Hybrids continue to be the most popular type of car, holding a 35% market share, followed by petrol cars at 29%.
Global credit ratings agency S&P previously downgraded its forecast for EU electric car sales in the first half of 2025 from 27% of the market to 21%, citing “shifting economic conditions.”
