Tesla sales plunge by 49% in Europe over stiff competition and brand image issues

Tesla sales plunged in the European Union in the first two months of the year, auto industry figures showed Tuesday, as Elon Musk's politics and ageing models may be turning consumers away.

New Tesla registrations sank 49 percent to 19,046 in January and February compared with the same two-month period last year, according to the European Automobile Manufacturers' Association, known as ACEA.

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The drop came despite a 28.4-percent increase in overall electric car sales in the EU over the same two-month span to 255,489 units, for an EU market share of 15.2 percent.

Tesla's older models are facing growing competition from newer Chinese and European cars.

But the brand's image has also taken a hit in Europe as Musk has backed a far-right party in Germany and has played a major role in President Donald Trump's administration, whose ties with the EU have been tense.

Several Tesla dealerships around the United States have been vandalised in recent weeks and the company's stock price has plummeted over the past month.

There have also been several incidents targeting Teslas in Germany -- Europe's biggest auto market -- in recent months, with at least eight cars set ablaze since the start of the year.

"A lot of people disagree with (Musk's) views," Matthieu Noel, an analyst at global consultancy Roland Berger, told AFP.

But, he added, it is still difficult to say at this stage whether "this has a real impact on the brand or if it is temporary".

German struggles

Musk sparked anger in Germany after he vocally supported the far-right Alternative for Germany (AfD) party in the recent general election.

Tesla sales fell by 76 percent in Germany in February after dropping by almost 60 percent in the previous month, according to official figures.

While electric car sales in Germany have suffered over the past year after the government withdrew a subsidy programme, the recent Tesla slump contrasted with a recovery in the broader sector.

Musk's car company is a pioneer in the electric car business, but Noel said Tesla's ageing offerings could also explain the falling sales in Europe.

"It no longer offers the best products," Noel said.

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While its best-selling Model 3 and Model Y have been upgraded, it still "looks like it's the same vehicle", the analyst said.

Concerns about reliability and a massive recall of Cybertrucks, which are not even sold in Europe, could also have played a part in turning off European consumers, Noel added.

Tesla's market share reached just 1.1 percent in the first two months of 2025, according to the ACEA trade group.

In February alone, Tesla registrations were down 47 percent at 11,743.

Though its market share slightly improved last month to 1.4 percent, it was behind Chinese rival SAIC, which makes electric and hybrid cars under the brand name MG.

Petrol vs electric

The electric car market grew in Germany, Belgium and the Netherlands, and has started to take off in Spain and Italy, according to the ACEA.

Despite the progress, ACEA director general Sigrid de Vries said the latest figures "confirm that market demand for battery electric vehicles remains below the level needed for the transition to zero-emission mobility to progress."

She cited a need for tax and purchasing incentives for clients and investments in recharging stations, at a time when the EU is preparing to ease emission reduction targets for struggling European automakers.

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Overall new car registrations fell three percent in the EU in January and February to 1.7 million units, according to the ACEA.

Hybrid-electric vehicles continued to be the biggest market segment, reaching 594,059 registrations for a 35.2 percent market share compared to 29.1 percent for petrol cars.