Tesla is facing a sharp decline in European sales, with February figures showing a staggering 47% drop compared to the same month last year. According to data from Hungary’s Portfolio, the EV giant’s struggles extend into 2025, with sales for the first two months plummeting by nearly half.
While the broader European auto market saw only a modest decline—down 3.4% in February—electric vehicle (EV) sales surged by almost 24%. Yet, Tesla found itself bucking that trend in all the wrong ways. Even in Germany, where overall EV sales jumped 31%, Tesla’s sales nosedived by more than 70%. Similar steep declines were recorded in France (45%), Portugal (50%), Sweden (42%), and Norway (48%).
Industry analysts point to multiple factors behind the slump, including production delays tied to the refreshed Model Y and supply chain issues from Tesla’s Chinese factory. But these alone don’t fully explain the dramatic collapse. Observers suggest Elon Musk’s increasingly vocal political stances—particularly his engagement with right-wing parties like Alternative for Germany (AfD)—may be souring European consumers on the brand.
Tesla’s troubles aren’t confined to Europe. Sales in China also took a major hit in February, plunging 49%—marking the lowest sales figures since mid-2022. Once commanding over 16% of China’s EV market, Tesla now holds a mere 4.3%. In Europe, its share of the total EV market slipped from 2.8% to 1.8% year-over-year.
Despite these setbacks, Musk has defied doubters before. Tesla still has several high-profile projects in development, including the Optimus humanoid robot and robotaxis. Meanwhile, his other ventures continue to thrive—SpaceX is now valued higher than Musk’s Tesla shares, and X (formerly Twitter), which critics once predicted would go bankrupt, has rebounded to its original purchase price.
While Tesla’s European decline is undeniable, history suggests it may be too soon to count Musk out.
