TESLA SALES PLUNGE NEARLY 50% ACROSS EUROPE

Tue 25 February 2025:

The US-based electric vehicle giant Tesla’s sales in Europe dropped by 45.2% in January on a yearly basis, the European Automobile Manufacturers’ Association (ACEA) data released on Tuesday showed.

Billionaire Elon Musk’s Tesla sold 9,945 units of vehicle in January, ACEA’s report showed, while this figure was at 18,161 units in January 2024 in Europe, including the EU, the European Free Trade Association (EFTA), and the UK.

Only in the EU, Tesla’s sales fell by 50.3% to 7,517 units in January 2025, versus the same month last year.

Meanwhile, battery electric car sales soared by 34% to 124,341 units in the EU and 37.3% in the EU, EFTA, and the UK together.

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A key contributor to Tesla’s declining sales is the transition to the updated Model Y “Juniper” edition, with buyers holding off on purchases of the older version in anticipation of the refreshed model’s wider availability.

Tesla is losing ground to competitors. European automakers like Volkswagen and Volvo, as well as Chinese brands like BYD, are gaining traction with more affordable and diverse EV options. Tesla’s relatively limited and aging model lineup, aside from the Model Y refresh, may be failing to keep pace with this intensifying competition.

Additionally, new EU regulations in 2025 are pushing carmakers to expand their EV market share to avoid hefty CO2 fines, even if it means selling at slim or no profit margins. This has likely eroded Tesla’s pricing advantage and market dominance, as rivals flood the market with compelling alternatives.

Elon Musk’s public image could also be playing a role. His vocal political stances, including support for far-right causes in Europe like Germany’s AfD party and controversial statements on social media, have sparked backlash. Some analysts and consumer surveys suggest this is turning off buyers in socially conscious markets, though it’s hard to quantify how much of the sales drop stems from this versus other factors. While Musk’s behavior coincides with the decline, the timing also aligns with the Model Y transition and seasonal sales patterns, muddying the picture.

Finally, market-specific issues, like the end of EV subsidies in countries such as Germany in 2024, have softened demand broadly, though Tesla’s steeper declines outpace the overall market. In short, Tesla’s European sales drop likely stems from a mix of the Model Y refresh timing, rising competition, regulatory shifts, and, to some extent, Musk’s polarizing persona—though the exact weight of each factor remains a matter of debate.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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