Tesla sales plunge by half in Europe as competition grows
Tesla’s vehicle sales in Europe have almost halved in the first two months of the year compared to the same period in 2024, according to figures released on Tuesday by the European Automobile Manufacturers’ Association (ACEA).
Hindered by an ageing model lineup and the controversial reputation of its CEO, Elon Musk, Tesla saw its registrations drop by 49 per cent in January and February, falling to 19,046 vehicles and capturing just 1.1 per cent of the market.
Meanwhile, the overall market for electric vehicles in the EU surged by 28.4 per cent over the same period, reaching 255,489 registrations and securing 15.2 per cent of total car sales.
Trump support
Tesla’s decline has been attributed in part to Musk’s vocal support for US president Donald Trump, which has alienated some European consumers. Musk is also in charge of DOGE, the department of government efficiency, which is tasked with cutting US government jobs and other spending.
At the same time, the company is struggling against an influx of new electric models from competitors, many of which offer fresher designs and improved technology.
One such competitor is Volvo, which has nearly completed a major overhaul of its plant in Ghent to ramp up production of its fully electric EX30. The transformation, representing a 200 million euro investment, includes a major expansion of the welding section and the installation of 580 robots.
"This aligns with our strategy to build cars where we sell them and source components locally"
The EX30, aimed primarily at the European market, will start rolling off the production line by the end of April. Volvo is targeting 30,000 units in 2025.
“This aligns with our strategy to build cars where we sell them and source components locally,” a Volvo representative said.
Sigrid de Vries, ACEA’s director general, said there was a need for increased investment in charging infrastructure, targeted tax incentives and lower electricity costs for EV owners to accelerate the transition.
Meanwhile, hybrid vehicles, which do not require external charging, are continuing to dominate the European market, accounting for 35.2 per cent of sales in early 2025, ahead of petrol cars at 29.1 per cent.
Across all fuel types, the European car market remains weak, with fewer than 1.7 million vehicles registered since the start of the year, marking a 3 per cent year-on-year decline.
German and Italian markets have been particularly affected. Stellantis, Europe’s second-largest carmaker, has suffered the most, with sales falling 17.1 per cent, while Volkswagen has managed to expand its market share to 27.3 per cent.
Tesla cars pictured ahead of a world record attempt in Sint-Truiden © BELGA PHOTO NATACHA FREISEN
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