Tesla is navigating a challenging period in Europe, with its April 2025 sales falling sharply even as the continent’s electric vehicle (EV) market continues to grow. New figures from the European Automobile Manufacturers’ Association (ACEA) reveal that Tesla delivered 7,261 vehicles across 32 European countries in April—a sharp 49% drop compared to the 14,228 units sold during the same month last year.
In contrast, overall electric vehicle (EV) sales rose 28% year-over-year, highlighting Tesla’s growing disconnect with consumers in a region that was once one of its strongest markets.
Europe’s Evolving EV Market
Tesla’s recent sales dip in Europe reflects, in part, broader changes in the continent’s EV market. European drivers are embracing a wider range of electrified options, with many turning to plug-in hybrids and hybrid-electric vehicles that offer more flexibility than full battery-electric models.
This diversification has opened the door for both established automakers and new entrants to gain ground. Chinese manufacturers, in particular, are making notable gains. BYD, Tesla’s fast-growing rival, outsold the American automaker in Europe for the first time in April. Meanwhile, SAIC, the Chinese parent company of MG, posted a 54% surge in sales last month by offering affordable, feature-rich EVs that appeal to value-conscious buyers.
Legacy European brands like BMW, Renault, and Volkswagen are also strengthening their foothold, introducing new models and expanding hybrid lineups.
Model Y Refresh
Earlier this year, Tesla launched a refreshed version of the world’s best-selling vehicle, the Model Y. While the update hasn’t yet led to a sales rebound in Europe, it lays the groundwork for future growth as production ramps up and availability improves.
The company has also faced temporary factory shutdowns to accommodate upgrades, which may have constrained supply in recent months. With production returning to full capacity, Tesla could regain momentum heading into the second half of the year.
Reputational Challenges
Brand perception has also played a role in Tesla’s recent challenges in Europe. CEO Elon Musk’s outspoken political views and public ties to controversial figures have led to protests in some European markets. In a recent interview, Musk admitted Europe is the company’s weakest market at the moment, but reiterated his commitment to Tesla, stating that he remains focused on guiding the company through this difficult period.
EV Growth Continues Across Europe
Overall, the European car market is showing resilience. Passenger car sales in the EU grew 1.3% in April, and the EV segment continues to expand rapidly. Battery-electric vehicles now account for 17% of the market, up from 13.3% a year ago. Plug-in hybrid and hybrid-electric models also saw strong gains, rising 31% and 20.8%, respectively.
With Tesla’s performance in April, the American automaker’s market share in Europe declined from 1.3% to 0.7% year-over-year.
