Tesla Faces Decline in European Sales Amid Growing Backlash Against Elon Musk

Tuesday 25 March 2025 - 16:10

By: Zahouani Ilham

Tesla Faces Decline in European Sales Amid Growing Backlash Against Elon Musk

Tesla’s sales in Europe experienced a significant drop of 49 percent in the first two months of 2025 compared to the same period in 2024, according to the ACEA manufacturers’ association. This decline can be attributed to several factors, including the aging of Tesla’s vehicle models. However, many potential customers may also be choosing not to buy in protest against Elon Musk, the company’s billionaire owner, who has become a prominent supporter of US President Donald Trump. His actions have sparked controversy and led to protests, with several Tesla dealerships in the United States vandalized in recent weeks.

Musk has gained attention for his outspoken stance on cost-cutting measures as head of the newly formed Department of Government Efficiency (DOGE), a move that has alienated many. His vocal support for far-right parties in Europe, such as Alternative for Germany (AfD), just before Germany’s February elections, has also contributed to the unrest surrounding the brand.

In Europe, new Tesla registrations dropped to just 19,046 in the first two months of the year, giving the company a modest 1.1 percent market share. Tesla’s sales in February alone were down by 47 percent, with just 11,743 new registrations. This slump occurred even as the overall electric vehicle market saw growth, with sales rising 28.4 percent in the same period.

Despite the growing demand for electric vehicles, ACEA’s Director General, Sigrid de Vries, stressed that the market for battery electric vehicles is still not at the level needed for a full transition to zero-emission mobility. She emphasized the need for tax incentives, subsidies, and investments in charging infrastructure to accelerate the shift.

Hybrid electric vehicles continued to lead the market in the first two months of the year, with 594,059 registrations, accounting for a 35.2 percent market share. This outpaced both petrol and diesel vehicles, which held market shares of 29.1 percent and 9.7 percent, respectively.

In addition, an EU filing revealed that Tesla has established a pool for selling carbon credits to other automakers to help them meet CO2 emission targets. Analysts estimate that Tesla’s sales could offset the emissions from these companies, but this may change if Tesla’s sales continue to decline. The EU is expected to approve a relaxation of its emission reduction measures, allowing for a three-year averaging of fleet emissions, which may impact the situation further.