Tesla Inc. (NASDAQ:TSLA) saw its car sales in Europe plunge sharply in April, as growing competition, an aging vehicle lineup, and a lingering backlash tied to CEO Elon Musk contributed to a significant drop in market share.
According to newly released data from the European Automobile Manufacturers’ Association (ACEA), Tesla registered just 7,261 new vehicles across the European Union, European Free Trade Association, and the UK in April – a 49% decline from the 14,228 units sold in the same period last year.
This steep drop slashed the automaker’s market share to 0.7%, down from 1.3% year-on-year, even as the broader battery electric vehicle (BEV) segment grew by over 34% with 145,341 new BEV registrations in April.
Tesla’s performance contrasts starkly with the expansion of the European EV market, as legacy European carmakers ramp up their own electric offerings and Chinese brands such as BYD (USOTC:BYDDF) aggressively push into the region. In fact, BYD reportedly overtook Tesla in European EV sales for the first time in April.
The sharp decline in sales also reflects broader challenges facing Tesla in Europe. The company’s vehicle lineup – especially the Model Y – is now seen as dated in the face of fresher alternatives. Plans are underway to refresh the model, but the rollout timeline remains uncertain.
Adding to the pressure is a consumer boycott that continues to affect Tesla’s image in parts of Europe. Protests and isolated incidents of vandalism, often linked to discontent over Musk’s political views and statements, have been reported at Tesla facilities in both Europe and the U.S.
While Musk has indicated that Tesla’s performance is rebounding in other international markets, the automaker continues to face fierce competition in China, the world’s largest EV market. A prolonged price war among EV makers in China has further squeezed Tesla’s margins and sales figures there.
Meanwhile, shifting consumer preferences have also played a role, with some buyers in Europe turning to hybrid vehicles as a more affordable and flexible alternative to fully electric cars amid lingering concerns over charging infrastructure and EV pricing.