Tesla’s new car sales in Europe have dropped for the fifth month in a row, according to new data from the European Automobile Manufacturers Association (ACEA). More people are now buying cheaper electric vehicles (EVs) from Chinese brands, leading to a big shift in the market.
In May 2025, Tesla sold only 13,863 cars in the European Union, the UK, and the European Free Trade Association countries. This is a sharp 27.9% drop compared to May 2024. Tesla’s share of the market also fell to just 1.2%, down from 1.8% last year. These numbers show that Tesla is losing its hold on the European EV market.
Why Tesla Is Losing Sales
- Tesla’s Reputation Is Hurting
One reason for Tesla’s falling sales is the growing negative image of CEO Elon Musk. His recent political activities, including spending almost $300 million to support former U.S. President Donald Trump, upset many people. Musk’s involvement in government cuts and online arguments with President Trump caused protests at Tesla stores across Europe. This hurt Tesla’s brand image and made some customers look elsewhere. - Strong Competition from China
Tesla is facing tough competition, especially from Chinese carmakers. Brands like BYD are becoming very popular in Europe. In April, BYD sold more cars than Tesla for the first time. In May, they came very close again. Chinese car companies are offering EVs at lower prices, which many customers prefer during tough economic times. - Model Y Not Enough to Save Sales
Tesla hoped its updated Model Y SUV would bring back customers, especially in countries like Norway where the car did boost sales. However, in most of Europe, this wasn’t enough to stop the downward trend. Tesla’s total sales continued to fall, and its shares are now down over 15% so far this year.
Chinese EV Makers Are Growing Fast
Daily news highlights: While Tesla struggles, Chinese electric car makers are doing very well in Europe. According to JATO Dynamics, they sold 65,808 cars in May 2025. Their market share more than doubled to 5.9%. This is happening even though the European Union recently placed tariffs on Chinese EVs.
One reason for this success is that Chinese companies are offering more variety. They are not only selling electric cars but also plug-in hybrids and full hybrid vehicles. These give customers more options and are helping Chinese brands grow quickly across Europe.
Felipe Munoz, a global analyst at JATO Dynamics, said, “Despite new EU tariffs, Chinese brands are growing fast because they offer what buyers want, including cheaper prices and more vehicle types.”
What This Means for the Future
This Breaking News story shows that Tesla is in trouble in Europe. It is losing customers to cheaper and more flexible Chinese competitors. At the same time, Elon Musk’s actions are making it harder for Tesla to keep a positive image in one of its key markets.
With car sales down, protests ongoing, and stock prices falling, Tesla will need to act fast if it wants to recover. It may need to focus on offering more affordable models and repairing its reputation with European customers.
As more updates come in, keep an eye on Daily news highlights for the latest on Tesla, electric vehicles, and global auto industry trends.
