EU Tesla sales plunge amid political controversy and EV competition
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Tesla continues to face mounting challenges in Europe as sales decline sharply across key markets. In France, new vehicle registrations dropped 14.54% year-on-year in March to 153,842 units, according to data from French automotive industry body PFA. Tesla's performance was notably weaker than the broader market, with sales falling 36.83% to 3,157 vehicles. This marks the third consecutive month of year-on-year declines for the automaker in France.
For the first quarter, Tesla registered 6,693 vehicles in France, representing a 41.08% drop from the same period in 2024. This places the company at its lowest first-quarter sales level in France since 2021. Tesla’s market share in the country fell to 1.63%, losing ground to Chinese electric vehicle manufacturers, including BYD, whose combined share rose to 3.19%—surpassing Tesla for the first time in the local EV market.
The situation was even more severe in Sweden, where Tesla’s March sales plunged 64% year-on-year to just 911 units, according to Mobility Sweden. These figures paint a troubling picture for the brand’s European market presence, particularly as the broader automotive sector navigates slowing demand and increased regulatory scrutiny.
Tesla’s struggles coincide with a broader political backlash. CEO Elon Musk, closely aligned with U.S. President Donald Trump, has generated controversy by engaging with far-right parties across Europe. This political stance has reportedly contributed to consumer alienation, with acts of vandalism targeting Tesla vehicles in several countries. Musk described a recent fire at a Tesla dealership in Rome, which destroyed 17 cars, as an act of terrorism, echoing similar rhetoric from Trump.
Amid this backdrop, the upcoming release of Tesla’s global Q1 delivery and production numbers on Wednesday will be closely scrutinized. Market participants will pay particular attention to how declining European performance reflects broader shifts in brand sentiment and competition, especially from increasingly assertive Chinese EV players.
With Tesla's European operations facing both commercial and reputational challenges, the Q1 figures are expected to offer vital insights into the company’s strategic positioning and resilience in a rapidly evolving market landscape.
For the first quarter, Tesla registered 6,693 vehicles in France, representing a 41.08% drop from the same period in 2024. This places the company at its lowest first-quarter sales level in France since 2021. Tesla’s market share in the country fell to 1.63%, losing ground to Chinese electric vehicle manufacturers, including BYD, whose combined share rose to 3.19%—surpassing Tesla for the first time in the local EV market.
The situation was even more severe in Sweden, where Tesla’s March sales plunged 64% year-on-year to just 911 units, according to Mobility Sweden. These figures paint a troubling picture for the brand’s European market presence, particularly as the broader automotive sector navigates slowing demand and increased regulatory scrutiny.
Tesla’s struggles coincide with a broader political backlash. CEO Elon Musk, closely aligned with U.S. President Donald Trump, has generated controversy by engaging with far-right parties across Europe. This political stance has reportedly contributed to consumer alienation, with acts of vandalism targeting Tesla vehicles in several countries. Musk described a recent fire at a Tesla dealership in Rome, which destroyed 17 cars, as an act of terrorism, echoing similar rhetoric from Trump.
Amid this backdrop, the upcoming release of Tesla’s global Q1 delivery and production numbers on Wednesday will be closely scrutinized. Market participants will pay particular attention to how declining European performance reflects broader shifts in brand sentiment and competition, especially from increasingly assertive Chinese EV players.
With Tesla's European operations facing both commercial and reputational challenges, the Q1 figures are expected to offer vital insights into the company’s strategic positioning and resilience in a rapidly evolving market landscape.