Tesla's European sales nosedived in the first quarter of 2025, with new data showing a sharp 45% decline compared to the same period last year. The figures, released by the European Automobile Manufacturers’ Association (ACEA) on Thursday, mark the steepest fall among major automakers in the region.
The company sold just over 36,000 vehicles across the EU between January and March. In March alone, Tesla sales dropped 36%, even as overall electric vehicle (EV) sales across the continent continued to grow.
Analysts attribute the drop to mounting backlash against Tesla CEO Elon Musk, whose close ties to U.S. President Donald Trump and recent political involvement have sparked widespread criticism. As a prominent adviser to Trump, Musk has been linked to controversial policies, including public service cutbacks, which have led to protests, vandalism of Tesla showrooms, and calls for boycotts in both Europe and the U.S.
Adding to the company’s woes, Tesla reported a 71% decline in first-quarter profits earlier this week, down to $409 million, while revenues dipped by 9% to $19.3 billion. The automaker cited "changing political sentiment" as a factor impacting demand.
In a move aimed at damage control, Musk announced he would scale back his political engagements with the Trump administration in May to concentrate more fully on Tesla’s operations.
Despite Tesla’s decline, the ACEA report showed growing momentum in EV sales across several European countries, including Germany and the United Kingdom. However, electric vehicles still represent only 15% of total car sales in the EU.
Hybrids remain the dominant vehicle type, holding a 36% market share, followed by petrol-powered cars at 29%.
ACEA Director General Sigrid de Vries described the current market trend as a “reality check,” emphasizing the growing gap between Europe’s ambitious climate targets and slower-than-expected consumer adoption of electric vehicles.
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