Tesla’s EU sales dropped by 49% in first 2 months of 2025

Tuesday, March 25, 2025 - Tesla’s electric vehicle sales in Europe dropped by 49% in January and February 2025 compared to the same period last year, according to data released by the European Automobile Manufacturers’ Association (ACEA) on Tuesday, March 25.

While the decline is partly attributed to ageing models, industry analysts suggest that some electric vehicle buyers may also be boycotting Tesla due to CEO Elon Musk’s political stance. Musk, a vocal supporter of U.S. President Donald Trump, has drawn criticism since taking charge of the newly established Department of Government Efficiency, which is leading an aggressive cost-cutting agenda. Amid the controversy, Tesla dealerships across the United States have been vandalized in recent weeks, and the company’s stock price has taken a significant hit.

According to ACEA data, new Tesla registrations in the European Union fell to 19,046 in the first two months of the year, shrinking the company’s market share to just 1.1%. February alone saw a 47% drop in Tesla registrations, down to 11,743 units. This decline comes despite overall EV sales in the EU increasing by 28.4% over the same period, reaching 255,489 units and accounting for a 15.2% market share. ACEA’s director general, Sigrid de Vries, highlighted the challenges facing the industry, stating:

“The latest new car registration figures confirm that market demand for battery electric vehicles remains below the level needed for the transition to zero-emission mobility to progress.”

She emphasized the need for tax incentives and investments in charging infrastructure as the EU considers easing emission reduction targets to support struggling European automakers.

While Tesla’s sales dropped, hybrid-electric vehicles saw a surge in demand, becoming the largest market segment with 594,059 registrations in the first two months of 2025, accounting for a 35.2% market share. In contrast, petrol and diesel vehicles continued to lose ground, holding market shares of 29.1% and 9.7%, respectively, in February. As the EV market evolves, Tesla faces mounting pressure to introduce fresh models and navigate the political and economic factors influencing consumer sentiment.