Tesla Faces Sharp Decline in European Sales Amid Political Controversy

27 May 2025

Tesla company logo (Photo: Shutterstock)

Tesla is experiencing a significant downturn in its European market, with new vehicle registrations plummeting by 49% in April 2025 compared to the same month in 2024. This decline starkly contrasts with the overall 27.8% increase in battery electric vehicle (BEV) sales across the continent during the same period.

The drop in Tesla's sales is largely attributed to public backlash against CEO Elon Musk's political affiliations, notably his support for former U.S. President Donald Trump and Germany's far-right Alternative für Deutschland (AfD) party. These associations have sparked protests at Tesla showrooms and have led to a tarnished brand image among European consumers.

In the United Kingdom, Tesla registrations fell by 62% year-on-year in April, with only 512 new vehicles registered. This decline is part of a broader trend affecting Tesla's performance in major European markets, including Germany and France.

Despite a recent 25% rally in Tesla's stock, shares remain down 6% for the year. The company's limited presence in the hybrid sector may also be contributing to its declining sales, as many motorists remain hesitant to transition fully to electric vehicles.

Tesla's challenges are compounded by increasing competition from Chinese automaker BYD, which has surpassed Tesla in global electric vehicle revenue. Efforts to revive interest with the redesigned Model Y have had limited success in boosting European demand.

The company's struggles are further exacerbated by a series of protests and acts of vandalism targeting Tesla vehicles and properties. These incidents are part of a larger wave of demonstrations against Elon Musk's political activities and his role in the Trump administration's Department of Government Efficiency (DOGE).

In response to the mounting criticism, Musk has announced plans to scale back his involvement in DOGE, citing the completion of key governmental reform efforts. However, the damage to Tesla's brand appears to be significant, with the company's reputation suffering in key markets.

As Tesla navigates these challenges, the company faces the daunting task of rebuilding consumer trust and reestablishing its position in the competitive European electric vehicle market. The coming months will be critical in determining whether Tesla can reverse its fortunes and regain its footing amid the ongoing political and public relations turmoil.