Tesla Sales Centre in Innsbruck, Austria. The US-based electric car manufacturer is facing a decline in sales in Europe amid rising competition and controversy involving CEO Elon Musk. Credit: Shutterstock, Kittyfly
Tesla has not had a great start in Europe this year. Sales in January and February fell almost half compared to the same months in 2024. This is especially surprising given the growing enthusiasm for electric vehicles in Europe.
In fact, recent figures from the European Association of Auto Manufacturers’ Associations show that Tesla numbers have soaked, but EV sales across the continent have risen by more than 28%.
To put that in context, Tesla sold just 19,046 cars in the first two months of 2025. This has dropped sharply from the 37,311 vehicles sold at the same time last year.
How Elon Musk’s controversial politics will affect Tesla’s brand image
However, Tesla’s sales aren’t the only problem. CEO Elon Musk has made headlines for all the wrong reasons, especially his recent support for the German Party (AFD) party. The move hasn’t worked out in Europe, causing criticism and even protesting outside Tesla dealers in both Europe and the US.
Musk’s support for President Donald Trump and his often controversial statements is more alienating European buyers who usually value sustainability and responsible corporate practices. Many feel that mask’s personal politics clashes with Tesla’s green image.
BYD challenges Tesla with rapid growth and advanced EV technology
Tesla also faces intense competition, particularly with Chinese automaker BYD. This announced record-breaking revenue of around £87 billion ($107 billion) thanks to a 40% increase in sales of electric and hybrid vehicles. BYD also launched an ultra-fast EV charging system that is as fast as refueling at gas stations, bringing serious challenges to Tesla.
In addition to Tesla’s troubles, their highly anticipated CyberTruck continues to experience important quality issues. Since launching more than a year ago, it has already been recalled eight times, including worrying issues with panels that can peel off while driving – CyberTruck is causing potential buyers to choose their choice.
If Tesla wants to bounce back in Europe, it needs to tackle image issues and reassure customers about the reliability of the vehicle.
