Tesla’s new car sales in Europe plummeted 27.9% year-over-year in May, according to data from the European Automobile Manufacturers Association (ACEA). The US electric vehicle maker’s market share dropped to 1.2%, down from 1.8% last year.
The decline is attributed to customers switching to cheaper Chinese electric vehicles. Chinese manufacturers maintained their strong momentum in Europe’s new car market last month, selling 65,808 units and more than doubling their market share to 5.9%.
Tesla CEO Elon Musk has faced criticism for his incendiary rhetoric and political activity, contributing to the brand’s reputational damage. The company’s revamped Model Y compact sport utility vehicle was expected to help turn around its fortunes but hasn’t delivered as hoped.
Rising competition from traditional automakers and Chinese players like BYD is putting pressure on Tesla. Despite European Union tariffs on Beijing’s EVs, Chinese manufacturers continue to post strong growth across Europe. Their success can be attributed to their decision to push alternative powertrains, such as plug-in hybrids and full hybrids, to the region.
Source: https://www.cnbc.com/2025/06/25/teslas-european-car-sales-fall-as-customers-switch-to-chinese-evs.html