While the electric market is doing rather well in Europe at the start of 2025, Tesla has seen its sales halved. The manufacturer appears to be suffering from a recent lack of innovation in the face of increasingly fierce competition, as well as Elon Musk's political antics.
The European Automobile Manufacturers' Association (ACEA) has released its latest figures on new electric vehicle registrations in Europe. The market in general is healthy, but Tesla is suffering a very sharp drop in sales. The manufacturer is paying the price, in particular, for Elon Musk's new, fiery political career.
In January and February 2025, sales of new 100% electric vehicles increased by 28.4% within the European Union. This increase is mainly due to the strong performances of three of the four main European electric markets: Germany (+41%), Belgium (+38%), and the Netherlands (+25%). The fourth largest market, France, on the other hand, recorded a decline of -1.3% over the period. 100% electric vehicles now represent 15.2% of new vehicle sales in Europe.
Tesla sales drop by half
The Volkswagen Group, the industry leader, saw its total deliveries increase by 4.8% in January and February 2025. Renault (+8.3%) and BMW (+2.5%) are the two other automotive giants experiencing growth. The situation is less enviable for Stellantis, whose sales fell by 17.1%. Peugeot and Citroën are down, but it is Fiat and Opel that are weighing down the group's results. Toyota (-5.0%), Hyundai (-7.9%), and Mercedes-Benz (-5.0%) also saw a decline in sales.
But that's nothing compared to Tesla. The American manufacturer has lost almost half of its customer base (-49%). After selling 37,311 new cars at the start of 2024, only 19,046 vehicles found a buyer in the first two months of 2025.
Several factors explain this massive decline of Tesla on the old continent. First, the brand has struggled to reinvent itself in recent years, as evidenced by the latest versions of the Model 3 and Model Y, which have brought few improvements. Competitors, meanwhile, continue to make progress, taking advantage of Tesla's absence from the city car and entry-level segments to establish themselves there.
To remedy this, Tesla is reportedly working on a Model Q, a new vehicle that is smaller, lighter, and less expensive than the Model 3. The Model Q is intended to make the Tesla ecosystem more accessible and boost sales. Except that the purely technological and industrial aspect is not the only one to consider in the case of the manufacturer.
Elon Musk's Trumpian adventures have an impact on Tesla
It's difficult to quantify to what extent, but there is no doubt that Elon Musk's fantasies are a brake on Tesla's growth. A supporter of Donald Trump, he heads DOGE (Department of Government Efficiency), which aims to reduce public spending in the United States. This political career (and his stance on certain issues) has clearly angered some consumers, who now refuse to buy or even drive a Tesla.
Tesla owners are looking en masse to sell their vehicles, causing a collapse in their value on the used market. There are clearly some good deals to be had on this front rather than buying a new Tesla right now. Acts of vandalism against Teslas have increased, both across the Atlantic and in Europe. This is enough to discourage potential buyers, who may fear damage to their vehicle, or even intimidation. To make matters worse, insurance companies are reportedly considering raising their prices, since Teslas are more prone to damage. Another argument for drivers not to buy a Tesla.
A few weeks ago, Donald Trump bought a Tesla, even though he doesn't drive it, in support of Elon Musk. For the President of the United States, this wave of what is beginning to resemble a boycott is dangerous. Other industrialists and businessmen may fear associating with him in the future if their companies could suffer. Ever the diplomat, Donald Trump declared that Tesla's damage would be considered domestic terrorism, which further exacerbated tensions between the "pro" and "anti" Musk factions.
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