Tesla Sales Plummet in the EU as Political Backlash and Outdated Lineup Take Their Toll
Tesla’s troubles in Europe are deepening. The automaker’s vehicle sales across the European Union fell sharply in March, dropping 36% compared to the same month in 2024. Even more alarming, Tesla’s registrations in the first quarter of 2025 were nearly cut in half compared to the same period last year, according to figures released Thursday by the European Automobile Manufacturers Association (ACEA).
The drop in performance is being attributed to a combination of factors, including CEO Elon Musk’s growing political alignment with Donald Trump and the aging nature of Tesla’s vehicle lineup. Since the start of the year, Tesla’s registrations in the EU have plummeted 45%, from 65,774 vehicles in the first quarter of 2024 to just 36,167 in 2025. This marks the steepest decline among major automakers operating in the region.
Ironically, the European market for electric vehicles (EVs)—Tesla’s mainstay—has seen significant growth. Registrations of battery-powered cars were up 17.1% year-over-year in March, and EVs now represent 15.2% of the overall market. Despite the broader trend, Tesla has failed to capitalize, suggesting brand-specific challenges are driving the decline.
The company has faced increasing hostility in both Europe and the United States, including acts of vandalism, protest movements, and calls for consumer boycotts. Much of the backlash intensified after Musk emerged as a key advisor to Donald Trump and began advocating for aggressive federal budget cuts.
On Tuesday, during its earnings announcement, Tesla acknowledged that shifting political dynamics could have a “significant short-term impact on demand for our products.” The warning accompanied a 9% decline in revenue for the first quarter, with total earnings falling to $19.3 billion.
France Lags as Other Markets Surge
While EV sales are on the rise in countries like Germany, Belgium, and Denmark—and are beginning to gain traction in Spain and Italy—France presents a different picture. There, electric car registrations fell 14% in March compared to a year earlier. The decline has been largely blamed on the reduction of government subsidies for electric vehicle purchases, which continues to affect consumer interest.
Even with gains in several EU nations, the growth of the electric market hasn’t satisfied the automotive industry’s expectations. According to ACEA Director General Sigrid de Vries, there remains a “persistent gap between ambitious decarbonization goals and the slower-than-expected adoption by consumers.”
In the meantime, hybrid vehicles are gaining ground. These models, which feature electric motors and batteries that don’t require external charging, have become the dominant force in the market. In the first quarter of 2025, hybrids accounted for 35.5% of all new car registrations in the EU, outpacing gasoline-powered models, which made up 28.7%.
Tesla’s continued decline amid an otherwise growing market suggests deeper reputational and strategic issues for the brand—problems that may require more than just new models or pricing strategies to resolve.
