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A Tesla sales centre in Innsbruck, Austria. Elon Musk, CEO of the US-based electric auto manufacturer Tesla, is facing declining European sales as a result of growing competition.
Credit: Shutterstock. Kittyfly
Tesla hasn’t had a good start to the year in Europe. Sales for January and February fell by half in comparison to 2024.
In fact, while Tesla‘s numbers dipped, EV sales across the continent jumped by over 28 per cent, according to recent figures from the European Automobile Manufacturers’ Association.
To put that in context, Tesla sold just 19,046 cars in the first two months of 2025—a sharp decline from the 37,311 vehicles sold during the same period last year.
Tesla brand image affected by Elon Musk’s controversial political views
Tesla’s issues aren’t just sales figures. Elon Musk is making headlines for the wrong reasons. His recent support for Germany’s extreme right Alternative for Germany (AfD), in particular, has caused controversy. This move was not well received by Europeans, who have criticised and protested outside Tesla dealerships in Europe as well as the U.S.
Musk’s support for Donald Trump as president of the United States and his frequently controversial statements on social media have alienated European customers who usually value sustainability and responsible corporate practice. Musk’s political views are now seen as incompatible with Tesla’s ecofriendly image.
BYD takes on Tesla with its rapid growth and advanced EV technologies
Tesla is also facing tougher competition than ever, particularly from Chinese automaker BYD, which recently announced record-breaking revenue of around £87 billion ($107 billion) thanks to a significant 40 per cent boost in electric and hybrid vehicle sales. BYD launched a fast EV charging system, which is nearly as fast as filling up at a petrol-station.
Cybertruck’s quality problems continue to plague the highly anticipated vehicle. With eight recalls already since its launch a little over a year ago—including a worrying problem with panels that can detach while driving—the Cybertruck is causing potential buyers to second-guess their choice.
Tesla will have to fix its image issues and assure customers of the reliability of their vehicles if it wants to rebound in Europe.
