Tesla’s European Sales Decline as Competition Increases

Tesla’s sales in Europe dropped nearly 45% in February, marking a significant decline amid rising competition and shifting consumer preferences.

According to data from Jato Dynamics, Tesla sold fewer than 16,000 vehicles across 25 European countries, including the UK, Norway, and Switzerland, down from previous years.

Tesla’s market share in Europe fell to 9.6%, its lowest February level in the past five years. The decline follows a 45% drop in January, when sales fell from 18,161 in 2024 to 9,945. However, in the UK, Tesla saw a 21% rise in new registrations, with the Model 3 and Model Y ranking among the top three best-selling vehicles.

Meanwhile, Volkswagen saw a 180% surge in battery electric vehicle (BEV) sales, reaching nearly 20,000 units in February. BMW and Mini sold a combined 19,000 electric models, while Chinese automaker BYD increased its European sales by 94%, surpassing 4,000 units.

Tesla’s declining sales come at a time when the company is facing stronger competition from legacy automakers and emerging Chinese brands. Analysts suggest multiple factors are contributing to the decline, including:

• Model Transition: Tesla is phasing out the current Model Y ahead of an updated version, affecting availability.
• Increased Competition: European and Chinese brands are expanding their EV offerings, attracting more buyers.
• Market Shifts: While overall EV sales in Europe rose by 26% in February, Tesla’s market share fell sharply, dropping from 18.4% in early 2024 to 7.7% this year.

Beyond Europe, Tesla faces growing competition from BYD, which recently overtook Tesla in global annual revenue. BYD’s total revenue reached $100 billion in 2024, surpassing Tesla’s $97.7 billion. The Chinese automaker sold 4.27 million vehicles last year, closing in on Ford’s 4.5 million. BYD expects to sell between 5 million and 6 million vehicles in 2025, further solidifying its global presence.

The Guardian and Politico contributed to this report.