Tesla has suffered a dramatic drop in sales across the European Union, with registrations of its vehicles plummeting nearly 53% in April compared to the same month last year—even as Europe’s overall electric vehicle (EV) market continued to grow.
Tesla’s Fourth Month of Decline
According to new figures from the European Automobile Manufacturers’ Association (ACEA), Tesla’s decline extended beyond the EU, with sales dropping by 49% across the broader region, which includes the UK, Norway, and Switzerland. This marks the fourth consecutive month of falling annual sales for the US-based EV leader in Europe.
The company’s market challenges have coincided with heightened consumer backlash against CEO Elon Musk’s political views and the company’s workplace decisions. Meanwhile, Tesla is also feeling mounting pressure from fast-growing Chinese rivals, most notably BYD.
BYD Overtakes Tesla for First Time
April 2025 saw a historic shift: BYD, a Chinese EV giant, sold 66 more battery electric vehicles (BEVs) in Europe than Tesla, marking the first time Tesla has lost its top spot since entering the market. While the difference is slight, industry analysts see this as a turning point. “This is a watershed moment for Europe’s car market, particularly when you consider that Tesla has led the European BEV market for years,” said Felipe Munoz, global analyst at JATO Dynamics.
BYD’s rapid expansion in Europe—after only launching outside Norway and the Netherlands in late 2022—underscores just how quickly the EV landscape is changing.
EV Market Still Expanding
The news comes even as the EU’s wider BEV market grows robustly, up more than 26% in the first four months of 2025. Unlike many competitors, Tesla’s lineup consists solely of battery-powered vehicles, while automakers like BYD offer both pure electric and hybrid options.
Tesla, which does not publish monthly or regional sales breakdowns, has not commented on the recent figures.
Broader Impacts for Tesla
This regional dip follows a turbulent start to the year for Tesla globally, with the company posting its first annual decline in worldwide sales for 2024 and the largest quarterly drop in its history. Tesla’s net income fell 71% in the most recent quarter, intensifying questions about its resilience amid rising competition and shifting consumer attitudes.
As the European EV market diversifies, all eyes are on Tesla to see how it responds to new challenges and whether it can reclaim its former dominance.
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