Tesla vehicle sales plunged in Europe last month, dealing a blow to CEO Elon Musk.
Despite overall electric battery car sales rising, sales of the vehicles made by the U.S. company dropped 49 percent in April compared to the same time last year.
Newsweek has contacted Tesla for comment by email.
Why It Matters
Tesla’s dwindling sales in Europe show a shift away from the brand toward Chinese competition. Some analysts see the decline as a response to Musk’s government role. As head of the Department of Government Efficiency (DOGE), the billionaire has overseen cuts to U.S. government agencies.
Critics may cite the protests at Tesla sites around the world and the slump in European sales as evidence that the company’s brand has been hurt by its CEO’s political activities, which include supporting far-right figures.
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What To Know
In April, Tesla sold 7,261 cars in Europe, according to the European Automobile Manufacturers Association, which recorded a drop of 49 percent year over year.
The EV maker’s market share declined to 0.7 percent from 1.3 percent in April 2024. The slump came as overall battery electric car sales rose by 34.1 percent annually.
Tesla launched an upgraded version of its Model Y sport utility vehicle in 2025, but its overall lineup of cars has had no new mass-market offering so far this year, CNBC reported.
According to the outlet, the firm sells only full battery-power vehicles and does not have hybrid electric cars, which European buyers have shown a preference for.
Russ Mould, the investment director at AJ Bell, told Newsweek that Tesla’s April sales slump in Europe raised doubts over the narrative that a remodeling and relaunch of the Model Y was the explanation behind the weaker numbers earlier in the year.
He said that process was now complete, with no sign of a major revival in volumes or market share, at least not yet.
Tesla reported global deliveries of 336,681 for the first quarter of this year—falling well short of the 390,342 expectation, according to Bloomberg consensus estimates, and resulting in the worst quarter for deliveries in almost three years.
What People Are Saying
Tesla CEO Elon Musk told Bloomberg’s Qatar Economic Forum last week: “Europe is our weakest market. We’re strong everywhere else. So our sales are doing well at this point. We don’t anticipate any meaningful sales shortfall.”
Russ Mould, the investment director at AJ Bell, told Newsweek: “Elon Musk’s political dabbling may not have helped at the margin, but the real issue probably lies with competition, as the Chinese push on and the Europeans start to exercise greater influence.”
What Happens Next
Musk, who indicated in recent weeks that he would take a step back from DOGE, said on X, formerly Twitter on Saturday that he was “back to spending 24/7 at work and sleeping in conference/server/factory rooms.”
Mould said Tesla’s share price did not seem unduly affected and that investors seemed to be welcoming the return of more of Musk’s attention and energy. “But Tesla’s $1 trillion-plus market cap also looks to pricing in a lot of hope and expectation for autonomous driving, robotics, AI and more besides,” he added.
Though Tesla faces further challenges, particularly outside the U.S., Musk remains optimistic about the company’s growth trajectory for 2025.
Update 5/27/25, 11:57 a.m. ET: This article has been updated with a comment from Russ Mould.
