Tesla is losing leadership in Europe. This is said by the data collected by the Jato Dynamics company, which ensure that Volkswagen has already managed to sell more electric vehicles in the continent in this first quarter of the year 2025.
Tesla’s shares and sales do not have a good time
At the time we wrote these lines, Tesla’s shares have already fallen just over 20% since the year began. However, sales that are registering in Europe will not sit well with investors.
In the first quarter of 2025, Tesla has managed to sell 53,237 new cars. While it might sound like a good figure, it means a staggering 38% drop in sales with respect to the same quarter of 2024. In addition, it should be remembered that Tesla also had very bad results in Europe at that time, as it sold 45% less than in the same exercise of 2023.
Despite the bad news, the Model Y remains undefeated with 29,770 units sold (almost half as in the same period of the previous year). The one that was the best selling car in Europe in 2023, remains the electric one that is most sold for 2025. Although, if Tesla’s trend is still down, it would not be unreasonable to think that other competitors could snatch the first position of the podium from Tesla.
Volkswagen and BMW climb positions
The descent of the sales of Tesla is also not due to a decrease in electric cars enrollments in Europe. According to Jato Dynamics data, the Volkswagen Group has headed with 65,679 units sold between January and March. Although this would have achieved it with the sum of their different brands, that is, Volkswagen, Audi, Cupra, Skoda and Seat.
In addition, half of the registration of new electric cars in Germany were from some of these brands of the Volkswagen Group. They are bad news for Tesla, because according to Oliver Blume, the company’s CEO, in 2026, the group will premiere its Electric Urban Car Family platform. With it, we will see small electrical utilities such as the Raval Cupra, the Skoda Epiq or the Volkswagen ID.2. And, as we know, the subcompact segment is Volkswagen’s specialty.
On the other hand, BMW has also benefited from Tesla’s sales decline. They have managed to sell 46,557 new electric cars. A rather important milestone, as BMW sells vehicles with a price much higher than Tesla herself.
Why does Tesla fall in Europe?
There are several reasons that could explain this drop in the sales of Tesla in the European continent. The explanation that many consider that the most obvious is the positioning of Elon Musk with the Government of Donald Trump and the German AFD party.
While it is true that Musk’s public statements may have affected Tesla’s reputation, it is difficult to think that this reason is the only catalyst in this important fall of 38% of sales.
And, long before these controversial events, some experts in the automobile sector have already predicted that Tesla was going to find complicated land in Europe with the emergence of Chinese manufacturers such as SAIC, with MG, or ByD, which even sponsored the European football Eurocup last summer of 2024.
Anyway, 2025 is not being a good year for Tesla in Europe. The brand has encountered the perfect storm. European manufacturers have awakened, and are finally managing their electric. Chinese brands threaten with a cheaper product that can take place from Tesla.
And finally, Elon Musk’s statements and his approach to Donald Trump’s government seems to be eroding sales in a market in which, until now, Tesla seemed invincible. Now that driving a Tesla is no longer the status-symbol left-leaning individuals aspired to, it has become difficult to excuse their poor performance, interiors and technology.
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