Tesla sales sink by nearly half in Europe

Core Viewpoint - Tesla's sales in the European Union have significantly declined, with a 49% drop in new registrations in January and February compared to the same period last year, attributed to competition and the brand's image issues related to Elon Musk's political affiliations [3][4][8]. Sales Performance - New Tesla registrations in the EU fell to 19,046 units in the first two months of 2025, marking a 49% decrease year-over-year [3]. - In Germany, Tesla sales plummeted by 76% in February, following a nearly 60% drop in January [8][10]. - Despite the overall electric vehicle market in the EU growing by 28.4% to 255,489 units, Tesla's market share has dwindled to just 1.1% in early 2025 [4][9]. Market Competition - Tesla faces increasing competition from newer electric models from Chinese and European manufacturers, which may be contributing to its declining sales [4][8]. - The brand's aging models, particularly the Model 3 and Model Y, are perceived as less competitive, with concerns about reliability and a significant recall of Cybertrucks impacting consumer perception [9]. Brand Image and Political Influence - Elon Musk's support for far-right political movements in Germany has negatively affected Tesla's brand image, leading to consumer backlash and vandalism incidents involving Tesla vehicles [5][7]. - Analysts suggest that the impact of Musk's political views on Tesla's brand may be temporary, but it is currently difficult to assess the long-term effects [6]. Market Trends - The overall new car registrations in the EU decreased by 3% to 1.7 million units in January and February, with hybrid-electric vehicles leading the market segment at a 35.2% share [12]. - The electric vehicle market is expanding in Germany, Belgium, and the Netherlands, but demand for battery electric vehicles remains below necessary levels for a transition to zero-emission mobility [11].