One of the leading electric car manufacturers, Tesla, has established a firm presence in many major markets like North America, Europe, UK, China and Japan. The company has been witnessing major setbacks with respect to sales in Europe, EFTA region (Norway, Switzerland, Liechtenstein and Iceland) and UK. Let’s take a closer look.
Tesla Car Sales Decline 45% In Europe
Tesla used to be a popular electric mobility solutions provider here. However, in recent times, Tesla has been witnessing a major sales decline in this region. The numbers are quite severe as Tesla sales halved YoY with 50.3% drop in Europe and a 45.2% drop in Europe + UK + EFTA regions in January 2025, as opposed to sales performance in January 2024.
This is a peculiar development as the demand for BEVs (Battery Electric Vehicles) is holding strong. In fact, BEV sales in Europe soared by 37% YoY. While electric cars, as a whole, are still popular and booming, European car buyers seem to be distancing themselves from Tesla brand, singularly.
The downfall of Tesla sales in Europe is a combination of factors, but controversies revolving around Tesla CEO, Elon Musk, might be a major reason. His infamous salute, his support for Germany’s AfD Party and his political views, his support for a jailed activist in UK are some of the controversies which stirred debates and damaged his public image.
Repercussions of these activities, launch anticipation of new and updated Tesla Y and inventory shortages are some of the reasons attributed to Tesla’s sales decline in January 2025. As per ACEA, Tesla sold 9,945 units in January 2025, down from 18,161 units from January 2024. In major European nations like France, Tesla sales fell by 63% YoY and in Germany, it was 59.5%.
Chinese EV sales Soar
The drop in Tesla sales in Europe, UK and EFTA region is not for lack of demand for EVs or BEVs. BEV sales grew by 37% YoY across Europe, demonstrating that there are no negative sentiments for electric cars. ACEA revealed 1,24,341 electric cars were sold in Europe and 1,66,065 units in Europe + EFTA + UK with a 16.7% market share and 11.9% YoY growth.
If we take SAIC Motors’ sales performance in this region in January 2025, the Chinese EV giant sold 22,994 units. New car sales in Europe saw a 2.6% decline YoY overall. The market share of Petrol and Diesel cars (combined) declined from 48.7% to 39.4%, followed by self-charging hybrid vehicles at 34.9%.
Source
Source: Electric - rushlane.com
