Tesla’s electric vehicle (EV) sales in Europe plummeted by nearly half in April, underlining the growing challenges the company faces in one of the world’s key automotive markets.

Tesla sold 7,261 vehicles in Europe in April, marking a 49% decline compared to the same month last year, according to the European Automobile Manufacturers’ Association (ACEA).

The drop came despite a 34.1% annual increase in overall battery-electric vehicle sales during the month.

Tesla’s share of the European market shrank to just 0.7%, down from 1.3% a year ago, despite an overall increase in EV sales.

The EV giant’s sales in the region have fallen for four consecutive months. Over the January to April period, sales dropped by nearly 40% year-on-year.

EVs a bright spot in a tepid market but Tesla continues to fall

Across the continent, carmakers are grappling with cost pressures, uncertain trade conditions, and slowing global growth.

In Britain, new vehicle registrations dropped 10.4% last month, while the EU-wide figure edged down by 0.3%.

Nevertheless, EVs remain a rare bright spot in an otherwise tepid market.

Battery-electric vehicle (BEV) registrations across Europe jumped by 27.8% in April.

In total, EVs—including BEVs, plug-in hybrids (PHEVs), and hybrid-electric vehicles (HEVs)—made up nearly 60% of all new passenger car registrations in the EU during the month.

Despite this growing appetite for cleaner vehicles, Tesla continues to lose ground, both to traditional automakers investing in electrification and to aggressive new players from China.

BYD, SAIC Motor gain ground in Europe at Tesla’s expense

One of the reasons behind Tesla’s loss is how steadily Chinese EV makers are making their presence felt in the region.

Chinese carmaker BYD outsold Tesla in the European EV market for the first time in April, according to data from JATO Dynamics.

State-owned SAIC Motor also surpassed Tesla’s monthly sales.

Competitive pricing and an expanding product lineup have helped Chinese brands make inroads in Europe, prompting local manufacturers to revise their forecasts.

Registrations at Japan’s Mitsubishi rose 22.1% in April, while SAIC posted a 24.5% jump. By contrast, Tesla and Mazda saw steep declines.

Model Y upgrade does little to boost demand; backlash against Musk weighs

Apart from competition from Chinese OEMs, reputational damage tied to Musk’s public political positions, and disruption by model changes are also key have also contributed to the loss.

Musk’s backing of US presidential candidate Donald Trump and vocal criticism of progressive causes have sparked protests outside Tesla showrooms in several European cities.

This negative sentiment appears to be affecting consumer decisions.

While the company recently launched an upgraded version of its Model Y, the refresh has done little to reinvigorate demand.

Critics argue that Tesla’s current lineup is showing signs of age, with no new mass-market vehicle unveiled in years.

Musk signals return to focus on business

Elon Musk has recently suggested he is shifting focus away from politics and back toward his business empire.

Since he announced on April 22 that he would scale back his involvement in the Trump administration, Tesla shares have surged 43%, restoring the company’s valuation to just over $1 trillion.

“Back to spending 24/7 at work and sleeping in conference/server/factory rooms. I must be super focused on X/xAI and Tesla TSLA (plus Starship launch next week), as we have critical technologies rolling out,” Musk said in an X post last week.

Despite the rebound, Tesla’s stock remains down 11% for the year and 29% below its all-time high.

Analysts now project Tesla’s vehicle sales will decline in 2025 compared to last year—a stark shift from earlier forecasts that had anticipated year-over-year growth.

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