Tesla is facing a crisis as its sales plummet across major European markets. On Monday, EV-specialized media outlet InsideEVs reported that Tesla’s sales in Europe have dropped by more than 50 percent.
In Sweden, sales plunged 81 percent, reaching the lowest level since October 2022. Significant declines were also recorded in the Netherlands (down 73.8 percent), Denmark (down 67 percent), and France (down 59 percent).
While the overall European EV market grew by 23.9 percent, Tesla’s first-quarter sales fell 45 percent to just 36,167 units. Its market share shrank from 2.4 percent to 1.3 percent. Even the updated Model Y failed to attract interest from European consumers, and the company posted a 37.3 percent drop in the UK and EFTA (European Free Trade Association) markets.
Tesla’s performance in the United States was also underwhelming. While total EV sales rose 11.4 percent in Q1, Tesla’s own sales dropped by 8.6 percent. Its global sales in the previous year fell by 13 percent, marking the worst performance in two years. Although a lower-priced model could offer a solution, the launch timeline remains uncertain.
Tesla’s slump is being attributed to CEO Elon Musk’s political behavior and his ties with U.S. President Donald Trump, which have negatively affected European consumer sentiment. Meanwhile, Chinese electric vehicles are rapidly gaining ground in Europe, eating into Tesla’s market share. Tesla is exploring new markets like Saudi Arabia and India, but a lack of charging infrastructure poses a significant challenge.
