Tesla is in big trouble in Europe. This comes just as the continent’s appetite for electric vehicles is growing again.
In April, Tesla’s sales dropped sharply in key markets—62% in the UK, 67% in Denmark, 74% in the Netherlands, 33% in Portugal, 59% in France, and a staggering 81% in Sweden. These crushing numbers came despite overall EV sales in the region growing by 24% in Q1 and 8% in the UK alone last month.
It’s a deepening crisis for the automaker, whose European market share is eroding under both political and competitive pressure.
CEO Elon Musk’s alignment with far-right figures and rhetoric in the UK and Germany has sparked backlash, while escalating U.S.-EU tariff threats have compounded resentment. Protests by groups like Tesla Takedown have become a familiar sight in places like Berlin.
Beyond Musk’s politics, the competitive landscape is shifting. China’s BYD is gaining momentum and is widely expected to surpass Tesla as the world’s top EV producer this year. The surge in European interest in more affordable or localized alternatives is making Tesla’s slide worse.
What Does This Mean for Me?
According to the European Automobile Manufacturers’ Association, Tesla saw a 36% drop in regional sales in Q1 2025, while the broader EV market boomed.
Globally, Tesla’s Q1 2025 performance was its worst on record. Net income collapsed by 71%, forcing the company to lean heavily on regulatory credit sales to scrape together a profit. With no guidance issued for full-year 2025 and confidence waning, analysts are bracing for more bad news in Q2.