Tesla’s struggle in Europe continued in May, with the American electric vehicle (EV) maker posting its fifth consecutive monthly sales decline. According to data from the European Automobile Manufacturers’ Association (ACEA) released on Wednesday, Tesla registered just 13,863 new vehicles across the EU, UK, and EFTA countries in May—down 27.9% from the same period in 2024.
This brought its total for the first five months of 2025 to 50,413 units, marking a steep 45.2% year-over-year drop.
With the sales drop, Tesla’s market share fell to 1.2% in May, while rival brands—especially Chinese and European automakers—are capitalizing on the shifting momentum. SAIC Motor, China’s state-owned automotive giant, saw its European sales grow 49.1% between January and May, reaching 88,475 units and exceeding Tesla in total registrations for the period.
Broader Trends Favour Hybrids and Chinese EVs
Despite Tesla’s continued struggles, the European EV market overall remains strong. Battery-electric vehicle (BEV) sales rose 25% in May compared to a year earlier and now represent 15.4% of all new registrations. Hybrid-electric vehicles, however, have become the dominant powertrain, capturing 35.1% of the market in the first five months of 2025.
Traditional internal combustion engines (ICE) continue to lose ground. Combined gas and diesel sales dropped to 38.1% of the market, down from 48.5% during the same period last year. Still, some regional variation remains—countries like Spain saw EV sales soar by nearly 79% year-to-date, while others, including France, reported a decline in BEV sales but gains in hybrid-electric registrations.
Market Leaders Shift While Tesla Lags
Volkswagen Group remains the top automaker in Europe, growing its registrations by 4.8% year-over-year. Other legacy automakers such as Renault (+6.6%) and BMW (+3.9%) also reported gains, while Stellantis posted a 10% decline. Tesla wasn’t the only automaker to post declines however, as Toyota, Hyundai, and Mercedes also recorded lower sales compared to 2024.
Tesla’s once-commanding position in the EV segment continues to erode. The company has yet to see a significant boost from its refreshed Model Y, and its ongoing reputational challenges—including backlash over CEO Elon Musk’s political activism—have further complicated its standing in key markets like France and Germany.
Adding to the pressure, Tesla was recently ordered by French regulators to stop ‘deceptively’ promoting its cars as fully autonomous or face financial penalties. Meanwhile, Chinese automakers continue to push aggressively into the European market, despite looming EU tariffs aimed at curbing their rapid expansion.
