In recent news, Tesla is facing a decline in Europe as new car registrations dropped by 49% in April 2025 compared to the same month last year, according to data from the European Automobile Manufacturers’ Association (ACEA). From January to April, Tesla registrations fell by nearly 39% year-over-year.
This decrease in Tesla’s market share stands in stark contrast to the overall electric vehicle (EV) market in Europe, which grew by 26.4% during the same period. More than 558,000 new battery-electric vehicles were registered in the EU in the first four months of 2025, accounting for a 15.3% share of the overall car market.
While Tesla is experiencing a decline, its competitors are thriving. German EV sales increased by almost 43%, with Belgium and the Netherlands also seeing gains. Other automakers, such as SAIC Motor and Volkswagen Group, have reported significant growth, capturing a larger portion of the EV market that Tesla once dominated.
One factor contributing to Tesla’s dwindling market share is CEO Elon Musk’s visible political ties to former U.S. President Donald Trump. However, Musk has since refocused on his companies with intense dedication, leading to a positive impact on Tesla’s stock performance. Shares of TSLA are up nearly 7% for the day, trading at $361.60, marking a high in the past three months.
The data underscores a shifting landscape for electric vehicles in Europe, as buyers are increasingly drawn to a wider range of EV models amid growing competition and the waning momentum of Tesla. As the market evolves, it will be interesting to see how Tesla adapts to regain its position in the European EV market.