Tesla’s electric vehicle sales in Europe fell 49% in January and 2025, according to data released by the European Automobile Manufacturers Association (ACEA) on Tuesday, March 25.
While the decline is partly attributed to the aging model, industry analysts believe some electric car buyers may also boycott Tesla due to CEO Elon Musk’s political stance. Musk, a vocal supporter of U.S. President Donald Trump, has criticized since he was in charge of the newly formed government efficiency ministry, which is leading an aggressive cost-cutting agenda. Amid this controversy, the company’s share price has been hit hard by the destruction of Tesla dealers in the United States in recent weeks.
According to ACEA data, EU’s new Tesla registration fell to 19,046 in the first two months of the year, reducing the company’s market share to just 1.1%. In February alone, Tesla’s registrations fell 47% to 11,743 units. Although overall EV sales in the EU increased by 28.4% over the same period, it still reached 255,489 units and accounted for 15.2% of the market share, this decline is still falling. ACEA Director General Sigrid de Vries highlighted the challenges facing the industry:
“The latest new car registration data confirms that market demand for battery-electric vehicles remains below the level required to transition to zero-emission liquidity advances.”
She stressed the need for tax incentives and investment in infrastructure, as the EU sees emission reduction targets to support struggling European automakers.
Despite Tesla’s sales decline, demand for hybrid vehicles surged, with the largest market segment having 594,059 registrations in the first two months of 2025, accounting for 35.2% of the market share. By contrast, gasoline and diesel vehicles continued to fail in February, with market shares of 29.1% and 9.7% respectively. As the electric vehicle market develops, Tesla is facing increasing pressure to introduce new models and lead to political and economic factors that affect consumer sentiment.
