Tesla, the American electric vehicle giant, is hitting a rough patch in Europe, where sales tanked by almost 45% last month. The drop comes as the company grapples with a possible buyer backlash tied to CEO Elon Musk’s polarizing role in Donald Trump’s administration, alongside fierce competition from rivals like China’s BYD, which just zoomed past Tesla to claim the top spot in global EV revenue with over $100 billion.
According to Jato Dynamics, Tesla sold fewer than 16,000 cars across 25 European countries—including the EU, UK, Norway, and Switzerland—in February, a 44% nosedive compared to the same period last year. The company’s market share in the region shrank to 9.6%, its lowest February figure in five years. January wasn’t much better, with sales sliding from 18,161 in 2024 to just 9,945 this year—a 45% plunge.
Interestingly, the UK bucked the trend. The Society of Motor Manufacturers and Traders reported a nearly 21% jump in new Tesla registrations there, with the Model 3 and Model Y trailing only the Mini Cooper in popularity. Still, that bright spot hasn’t offset the broader European slump.
Musk’s high-profile political moves are under the microscope as a potential culprit. The billionaire, a key Trump ally, has stirred controversy by backing Germany’s far-right AfD party, waving a “chainsaw of democracy” at a conservative event, and slamming UK Prime Minister Keir Starmer over alleged cover-ups. Tesla dealerships have even faced protests, hinting at a growing consumer revolt. Analysts and investors are scrambling to figure out how much of this is denting the brand’s appeal.
But it’s not all about politics. Tesla’s in the middle of a major shake-up with its bestselling Model Y, phasing out the current version ahead of an update. “Tesla’s navigating a perfect storm,” said Felipe Muñoz, a global analyst at Jato Dynamics. “Musk’s political spotlight, tougher EV competition, and a limited lineup make it vulnerable during a model transition.”
Meanwhile, Tesla’s rivals are charging ahead. Volkswagen’s electric vehicle sales soared 180% to nearly 20,000 units in Europe last month, while BMW and Mini together moved 19,000. China’s BYD, a rising star, saw a 94% spike to over 4,000 units and clinched $100 billion in global revenue for 2024—edging out Tesla’s $97.7 billion. BYD’s total vehicle sales hit 4.27 million last year, including hybrids, closing in on Ford’s 4.5 million, while Tesla delivered 1.79 million EVs compared to BYD’s 1.76 million.
Polestar, backed by Volvo’s parent Geely, also jumped 84% to over 2,000 sales. BYD’s forecasting 5 to 6 million vehicles this year, boosting its market value to $160 billion—a 50% leap in 2025. Tesla, despite a stock dip of over a third this year, still sits at $780 billion, with shares rebounding 6% Monday as the Nasdaq climbed nearly 2%.
Across the 25 European markets tracked, total car sales dipped 3% to 970,000 in February, but battery-electric vehicle registrations surged 25%. For Tesla, though, the road ahead looks bumpy as it balances Musk’s headlines with a fiercely competitive EV landscape.
