Tesla sales fall sharply in Europe despite upswing in electric vehicle market

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Tesla’s sales in Europe fell for a second straight month in February, as the electric-vehicle maker missed out on an upswing in the continent’s EV market following Elon Musk’s interventions in regional politics.

Musk’s company sold 16,888 vehicles in Europe in February, down more than 40 per cent from the 28,182 it sold in the same month of 2024, according to the European Automobile Manufacturers’ Association.

Tesla’s decline came against a 26 per cent rise in sales of battery-electric vehicles from a year earlier, Acea said. Its figures cover the EU, UK, Iceland, Liechtenstein, Norway and Switzerland.

Tesla’s share of the European market fell to 1.8 per cent in February, from 2.8 per cent a year earlier.

Tesla’s shrinking market share followed Musk’s unprecedented foray into European politics, where he backed the far-right Alternative for Germany party (AfD) ahead of the country’s February elections.

Analysts also blame Tesla’s drop in sales on its ageing product portfolio, with consumers waiting for its upgraded Y model set to be released this year.

The company also faces increasing competition from BYD and other Chinese rivals, which together outsold Tesla in European EV sales in February, according to Jato Dynamics.

“In addition to Elon Musk’s increasingly active role in politics and the increased competition it is facing within the EV market, the brand is phasing out the existing version of the Model Y — its best-selling vehicle,” said Felipe Munoz, global analyst at Jato Dynamics.

Continuing a sharp fall in January, registrations of new Tesla vehicles in February fell 76 per cent from a year earlier in Germany, 48 per cent in Norway and 26 per cent in France.

Overall new car registrations were down 3 per cent year-to-date compared with the same period in 2024, with big falls in Germany, France and Italy.

Outside Europe, Tesla recently reported that its retail sales in China, excluding exports, fell 87 per cent year on year in February, hitting its lowest monthly sales since August 2022.

Tesla vehicles and dealerships have become targets for protest in the US and Europe in response to Musk’s outsized influence in the White House, his attack on the US federal government as the de facto head of the so-called Department of Government Efficiency and his support for Germany’s AfD.

Musk has made a direct appeal to Tesla employees to hold on to the carmaker’s shares, which have fallen more than 40 per cent in price from mid-December. The stock was down 1.7 per cent in pre-market trading on Tuesday after rising 12 per cent on Monday.