Tesla’s dominance in Europe is unravelling at an alarming pace, with its share of the continent’s electric vehicle (EV) market plummeting by 58% in the first two months of 2025, according to Politico.
Tesla’s market share dropped from 18.4% in 2024 to just 7.7% during the same period this year. The stark decline comes amid a broader rebound in European EV sales, which rose by 26% year-on-year in February to 164,148 units.
The downturn has been exacerbated by a growing backlash against CEO Elon Musk, whose political alignment has alienated European consumers. Musk’s decision to campaign for Germany’s Alternative for Germany (AfD) party ahead of February’s snap election proved particularly damaging.
In a recent survey of 100,000 German consumers, over 94% stated they would no longer consider purchasing a Tesla—a significant blow to a country hosting one of Tesla’s flagship Gigafactories near Berlin.
Compounding Tesla’s woes is the rapid rise of Chinese competitors. Brands like BYD, the world’s largest EV manufacturer, registered 4,400 vehicles in Europe in February alone—a 94% annual increase—and outsold Tesla by nearly 20,000 units last month. The surge occurred despite the European Commission’s imposition of tariffs on Chinese-made EVs in 2023, underscoring the shifting dynamics of the market.
Analysts attribute Tesla’s struggles to a toxic combination of brand erosion and strategic missteps. Musk’s vocal support for former US President Donald Trump and his embrace of national-oriented politics have clashed with the progressive values traditionally associated with EV buyers.
Meanwhile, European automakers such as Volkswagen and Stellantis, alongside Chinese rivals, are flooding the market with competitively priced, technologically advanced models. With European sales collapsing and rivals gaining ground, Tesla faces an uphill battle to regain trust in a region central to its global ambitions.
