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Tesla’s (NASDAQ:TSLA) grip on the European electric vehicle market weakened sharply in April, as the U.S. automaker faces intensifying competition and mounting reputational challenges tied to CEO Elon Musk.
The U.S.-based company sold just 7,261 vehicles in Europe last month, a staggering 49% drop compared to April 2024, according to figures from the European Automobile Manufacturers’ Association (ACEA). The decline came in stark contrast to the broader EV sector, which grew 34.1% year-over-year in the same period.
The slump is part of a larger downward trend. Tesla’s European sales have plummeted nearly 40% during the first four months of 2025.
Musk’s growing political entanglements in the U.S., particularly his alignment with President Donald Trump and his role as head of the Department of Government Efficiency, have sparked backlash in Europe. Protests erupted at Tesla dealerships across the continent in March, highlighting consumer unease with the brand.
While the billionaire CEO has publicly pledged to remain at the helm of Tesla for at least the next five years, he recently acknowledged spending part of his week on government duties. On Tesla’s most recent earnings call, Musk said his time spent on DOGE would be significantly reduced by the end of May, though he still plans to devote “a day or two per week” to the role.
Competition is also heating up. Chinese manufacturer BYD recently surpassed Tesla in pure EV sales in Europe for the first time, signaling a shift in consumer preferences and market dynamics. Legacy automakers, too, are gaining ground by ramping up their own electric offerings.
Tesla’s vehicle lineup is beginning to show its age. Although the company introduced a refreshed Model Y SUV this year, it has yet to unveil a new mass-market model.
Adding to the company’s challenges is a shift in consumer demand toward hybrid EVs, which now make up just over 35% of the European auto market, according to ACEA data.
Shares of Tesla (NASDAQ:TSLA) were up 2.7% premarket on Tuesday.