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Tesla’s European Sales Drop 49% Amid Aging Models and Divisive Leadership

Tesla’s electric vehicle sales in Europe have experienced a sharp decline, dropping 49 percent in the first two months of 2025 compared to the same period last year, according to figures released by the ACEA manufacturers’ association on Tuesday.

This significant sales drop is largely attributed to the aging of Tesla’s current model lineup, but some analysts suggest that consumer reluctance to support the brand may also stem from the controversial actions of its billionaire owner, Elon Musk. Musk, who has become a prominent supporter of US President Donald Trump, has faced backlash from segments of the market that disagree with his political stances.

Adding to the challenges, Musk’s leadership of the newly established Department of Government Efficiency (DOGE) has been marked by a divisive cost-cutting strategy that has contributed to the strain on the company’s public image. In recent weeks, several Tesla dealerships in the United States have been targets of vandalism, and Tesla’s stock price has taken a notable downturn.

According to the ACEA, new Tesla registrations in the European Union fell to 19,046 during January and February, giving the company a mere 1.1 percent market share. In February alone, Tesla registrations were down 47 percent, with only 11,743 new vehicles registered.

While Tesla’s sales are faltering, the overall electric vehicle market in the EU is seeing growth. Sales of electric vehicles surged by 28.4 percent in the first two months of 2025, totaling 255,489 units, and now accounting for 15.2 percent of the EU’s car market.

Sigrid de Vries, the Director-General of ACEA, highlighted that despite the growth in electric vehicle sales, market demand for battery electric vehicles (BEVs) remains below the necessary level for the transition to zero-emission mobility. She called for stronger incentives, including tax breaks and subsidies for buyers, as well as investments in charging infrastructure to help drive the shift towards electric mobility.

In the broader market, hybrid-electric vehicles (HEVs) continue to dominate, with 594,059 registrations in the first two months of 2025, securing a 35.2 percent market share. This outpaced both petrol and diesel vehicles, which had respective market shares of 29.1 percent and 9.7 percent in February.

With the EU preparing to ease emission reduction targets for struggling automakers, industry leaders continue to stress the importance of boosting the electric vehicle sector through more substantial policy and infrastructure support.

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