According to new data from the European Automobile Manufacturers’ Association (ACEA), Tesla’s EV registrations dropped 45.2% between January and May, plummeting from nearly 92,000 units to just over 50,000. Its EU market share halved, falling from 1.6% to just 0.9%.
Meanwhile, battery EVs (BEVs) grew to 15.4% of EU market share (up from 12.1%), and hybrids surged to 35.1%, with traditional petrol and diesel vehicles declining sharply.
Tesla’s troubles:
- Sales plunged across Germany, Belgium, and the Netherlands — even as BEV demand rose double digits.
- France and Spain saw hybrid sales jump over 30%, while Tesla’s presence shrank dramatically.
- Across Europe (including UK and Switzerland), Tesla registrations fell 37.1% year-over-year.
Adding to the pain, BYD overtook Tesla in EU EV sales for the first time in April, delivering 7,230 units versus Tesla’s 7,165. In the UK — where Chinese EVs face no tariffs — BYD sales spiked 400% in May, while Tesla’s fell 36%.
Musk’s Image Hurting the Brand
Tesla’s decline coincides with growing backlash over Elon Musk’s political activity. His support for Germany’s far-right AfD party and close ties to Trump have triggered protests at Tesla showrooms across Europe, particularly in Germany — where EV sales jumped 45%, but Tesla lost ground.
Despite launching a revamped Model Y and completing factory upgrades, Musk’s promised rebound has not materialized. Tesla’s recent losses suggest deeper reputational issues.
Chinese EV Makers Dominate
Meanwhile, Chinese automakers are thriving. SAIC sold 18,716 vehicles in Europe in May, overtaking Tesla. BYD, which outsold Tesla in April, stayed close behind in May. Chinese brands now hold 5.9% of the EU market, double last year’s share — despite new tariffs.
The success is driven by aggressive pricing and a broader lineup of hybrid and electric models, resonating with cost-conscious European buyers.
Robotaxi Rollout Can’t Offset Losses
Tesla’s new robotaxi test program in Austin has sparked interest, but reviews have been mixed. Some test riders posted videos showing the vehicles veering into wrong lanes, prompting regulatory scrutiny.
Musk’s vow to deploy a million robotaxis by year-end now seems overly ambitious.
Shares Sink, Outlook Weakens
Tesla shares dropped nearly 5% on Wednesday, extending their 2025 loss to over 18%. The company’s grip on the European market — once its fastest-growing region — continues to weaken, squeezed between cheaper Chinese competition and growing political damage.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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