While Europe’s electric vehicle market bounced back in May, Tesla took a sharp knock, with sales tumbling more than 40%, a stark contrast to the wider industry’s upward swing.
Tesla’s May sales in Europe fell by 40.2% compared to the same month in 2024, according to figures released by the European Automobile Manufacturers’ Association (ACEA) on Wednesday. This decline occurred even though battery-electric vehicle (BEV) sales across Europe rose by a solid 25% during the same time frame.
The drop in performance for the American EV manufacturer underscores an increasing gap between Tesla’s results and the overall European EV market trend.
Over the first five months of 2025, Tesla’s European sales dropped 45.2% year-on-year, shrinking its share of the region’s auto market to just 1.1%, nearly halving from 2% last year. Industry observers have pointed to several headwinds for the company. Tesla is finding it more difficult to differentiate itself as its model lineup grows older and competition intensifies, especially from European automakers like VW and BMW, along with fast-emerging Chinese brands. In the first quarter of 2025, VW recorded a 4.5% increase in car registrations across Europe, while BMW saw a 2.3% uptick during the same period.
There’s also the Elon Musk factor. The Tesla CEO’s involvement with U.S. President Donald Trump’s administration, followed by a public fallout earlier this month, may have taken a toll on the brand’s appeal in some European markets. Musk stepped down from his advisory role at the end of May, after disagreements over Trump’s latest budget bill. Meanwhile, EV sales across Europe are gaining speed again after a sluggish 2024. Between January and May this year, BEVs made up 15.4% of all cars sold, up from 12.1% in the same period last year. ACEA reports a 26.1% jump in BEV sales over the five-month period, signalling renewed momentum for the segment.
Still, industry leaders warn that progress is uneven. “Consumer reluctance is by no means a myth,” said ACEA Director General Sigrid de Vries, stressing the need for better charging networks and stronger government incentives to encourage adoption.The EU plans to ban the sale of new petrol and diesel cars by 2035, but affordability and infrastructure gaps continue to slow the shift.
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