EU: Tesla’s sales drop by 49% in early 2025

Tesla’s vehicle sales in the European Union declined sharply in the first two months of 2025, falling by 49 percent.

The drop has been attributed to ageing models and a possible consumer boycott in response to Elon Musk’s support for US President Donald Trump.

Musk, now leading the newly established Department of Government Efficiency (DOGE), has been driving an aggressive cost-cutting campaign. His role in the administration has sparked controversy, with some Tesla dealerships in the United States recently vandalised.

The company’s stock price has also suffered significant losses over the past month.

During a cabinet meeting with President Trump at the White House on February 26, 2025, Musk was seen wearing a shirt that read “Tech Support.”

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According to the European Automobile Manufacturers’ Association (ACEA), new Tesla registrations in the EU dropped to 19,046 in the first two months of the year, reducing the company’s market share to just 1.1 percent. February sales alone fell by 47 percent, with 11,743 registrations.

Despite Tesla’s struggles, the broader electric vehicle market in Europe experienced growth.

EV sales rose by 28.4 percent in the first two months of 2025, reaching 255,489 units and capturing a 15.2 percent market share. However, ACEA director general Sigrid de Vries noted that overall demand for battery electric vehicles is still insufficient.

“The latest new car registration figures confirm that market demand for battery electric vehicles remains below the level needed for the transition to zero-emission mobility to progress,” de Vries said.

She pointed to the need for tax incentives, purchasing support, and expanded recharging infrastructure, especially as the EU considers easing emission reduction targets for struggling European automakers.

Hybrid-electric vehicles remained the most popular choice in the early months of the year, with 594,059 registrations and a 35.2 percent market share. This segment outperformed petrol and diesel vehicles, which accounted for 29.1 percent and 9.7 percent of the market, respectively, in February.

(AFP)

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