Tesla’s European Death Spiral Has No End In Sight

After a disastrous first quarter, Tesla’s sales figures in Europe tanked even further in April.

Tesla Sales Down

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Iulian Dnistran

By: Iulian Dnistran

May 5, 2025 at 8:33am ET

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Tesla sales in several European countries plummeted by over 50% in April.
The poor performance comes after a first quarter in the red and a disappointing full year in 2024.

Despite it still being one of the largest electric car makers in the world, Tesla’s grip on the market is weakening month after month. That’s especially true in Europe, where buyers have plenty of alternatives to Tesla’s aging lineup of battery-powered cars.

More and more people in Europe’s largest EV markets are ditching Teslas in favor of pretty much anything else, either because they want nothing to do with CEO Elon Musk’s antics or simply because they found a better car somewhere else.

Whatever the reason, the sales figures are disappointing, to say the least. In April, Tesla sales went down an astonishing 81% in Sweden—the lowest level since October 2022. In the Netherlands, Tesla sales decreased 73.8% compared to the same month last year. It’s the same story in Denmark and France, where the American automaker’s numbers fell by 67% and 59% respectively. In Portugal, the fall wasn’t as abrupt, but at 33%, it’s still nothing to write home about.

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All of this is despite Tesla’s best efforts to rejuvenate its presence in Europe with the launch of the refreshed Model Y. The electric crossover has long been the company’s breadwinner, and has led the sales charts in Europe. But even with styling and under-the-skin upgrades courtesy of the facelift, the crossover has had a hard time recapturing Europeans’ attention.

In the first quarter of this year, all-electric car sales in the European Union went up by 23.9%. Despite this, Tesla’s sales in the region plummeted by 45% to just 36,167 units, according to the European Automobile Manufacturers’ Association (ACEA). At the same time, Tesla’s market share went from 2.4% last year to 1.3% in the first quarter of this year.

In the enlarged market of the European Union, the United Kingdom, and the European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland), Tesla sales fell by 37.3% in the first quarter as overall EV sales went up 28%.

2025 Tesla Model Y Juniper (U.S. Spec)

The refreshed Tesla Model Y has so far failed to put the automaker's sales figures in the green.

Photo by: Tesla

In the United States, the company had a softer fall, but a fall nonetheless. While total EV sales grew 11.4% in the first quarter, Tesla’s numbers went down 8.6%, according to data from Cox Automotive.

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Tesla’s latest woes in Europe come hot on the heels of a disappointing year for the name that was once hailed as a pioneer in the EV space. Last year, Tesla posted its first drop in global deliveries in a decade, while Q1 2025 came with a 13% drop year-over-year.

The big question now is: can Tesla come back from its sales slump? Judging from the hype surrounding the affordable Slate electric pickup, one would argue that what Tesla needs most right now is that long-delayed cheap EV. The company seems to have figured out so much, with a more affordable model potentially seeing the light of day next month. We still don't know what that car will be, though. One report said it could be a stripped-down, smaller Model Y, while Musk himself seems hell-bent on selling people a two-door, steering wheel-less robotaxi running unproven software.

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