Sales Decline and Political Backlash
Tesla's sales in Europe dropped significantly in the first quarter of 2025, with a 45% decline to just over 36,000 units, despite a general increase in electric vehicle (EV) sales across the continent.
The decline is attributed to a combination of factors including political criticism of Elon Musk's role in the Trump administration, vandalism, demonstrations, and a stale vehicle portfolio.
Market Dynamics and Future Prospects
Despite Tesla's challenges, the overall EU market saw a rise in EV sales, with hybrids leading at a 36% market share. The EU's ambitious climate goals aim for a significant reduction in fossil fuel vehicle sales by 2035.
Tesla plans to launch new, more affordable models in the first half of 2025, aiming to regain market momentum. However, analysts warn of potential brand damage due to Musk's political affiliations and recent controversies.