{"id":26355,"date":"2025-03-25T12:41:52","date_gmt":"2025-03-25T07:41:52","guid":{"rendered":"https:\/\/bigbreakingwire.in\/?p=26355"},"modified":"2025-03-25T15:39:40","modified_gmt":"2025-03-25T10:09:40","slug":"tesla-sales-drop-40-percent-europe-2025","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/tesla-sales-drop-40-percent-europe-2025\/","title":{"rendered":"Tesla\u2019s European Sales Drop 40% in February 2025 Amid Rising Challenges"},"content":{"rendered":"
Tesla Faces a Sharp Decline in European Sales<\/strong><\/p>\n\n\n\n Tesla, the world\u2019s leading electric vehicle (EV) manufacturer, is facing a significant slowdown in Europe. In February 2025, Tesla\u2019s new vehicle registrations in the European Union, the UK, and the European Free Trade Association (EFTA) countries dropped by 40.1% compared to the same month last year. The company sold only 16,888 vehicles, according to data released on March 25, 2025.<\/p>\n\n\n\n This decline follows a similar slump in January, raising concerns about Tesla\u2019s ability to maintain its market position in Europe. The European Automobile Manufacturers\u2019 Association (ACEA) also reported that Tesla\u2019s market share in the region has dropped to 1.8%, down from 2.8% a year ago.<\/p>\n\n\n\n Tesla Struggles as the EV Market Grows<\/strong><\/p>\n\n\n\n Interestingly, Tesla\u2019s struggles come at a time when the European battery electric vehicle (BEV) market is booming. In February 2025, BEV sales increased by 26.1% year-on-year, with strong performances from competitors like: While Tesla’s sales declined, the demand for electric and hybrid vehicles remained strong. In the January-February period:<\/p>\n\n\n\n Hybrid EVs led with a 35.2% market share<\/p>\n\n\n\n Petrol cars held 28.6%<\/p>\n\n\n\n Battery EVs accounted for 15.2%<\/p>\n\n\n\n The growing preference for hybrid vehicles over fully electric ones may be another reason why Tesla is losing ground in Europe.<\/p>\n\n\n\n Tesla’s Market Share and Sales Plunge in Europe<\/strong><\/p> Tesla’s market share in Europe has dropped significantly. In February 2025, its overall market share fell to 1.8% from 2.8% a year earlier. Its share of the electric vehicle (EV) market also declined, dropping from 21.6% to 10.3%. Sales took a big hit, with Tesla selling fewer than 17,000 cars in February 2025, compared to over 28,000 in the same month last year\u2014a sharp 42.6% year-to-date decline. Why Is Tesla Losing Market Share?<\/strong><\/p>\n\n\n\n Tesla\u2019s declining sales in Europe can be attributed to several factors:<\/p>\n\n\n\n 1. Rising Competition from China and Europe<\/strong><\/p>\n\n\n\n Tesla no longer dominates the EV market as it once did. Chinese brands like SAIC Motor and established European manufacturers like Volkswagen, Renault, and BMW are offering high-quality electric cars at competitive prices. These alternatives are attracting more European customers.<\/p>\n\n\n\n 2. Shift Towards Hybrid Vehicles<\/strong><\/p>\n\n\n\n European buyers are increasingly choosing hybrid EVs over fully electric cars due to concerns about charging infrastructure and driving range. Tesla, which only sells fully electric vehicles, is losing out in this trend.<\/p>\n\n\n\n 3. Elon Musk\u2019s Controversial Image<\/strong><\/p>\n\n\n\n Beyond market competition, Tesla is also facing a reputation crisis linked to its CEO, Elon Musk. His political endorsements, including support for Donald Trump and a far-right German party, have sparked protests across Europe.<\/p>\n\n\n\n Tesla showrooms, cars, and facilities have been targeted by activists in several cities, further damaging the company\u2019s brand image. Some former Tesla supporters are now boycotting the brand, associating it with Musk\u2019s controversial political views.<\/p>\n\n\n\n Tesla\u2019s Response: Can a Cheaper Model Y Help?<\/strong><\/p>\n\n\n\n In an effort to regain lost ground, Tesla is planning to launch an updated Model Y SUV later in 2025. According to a Reuters report, the new Model Y could see a price cut of up to 20% to attract more buyers.<\/p>\n\n\n\n While a lower price may boost sales, industry analysts warn that Tesla\u2019s problems go beyond affordability. The company is facing weaker demand not only in Europe but also in North America and China, where competition from BYD and traditional automakers is intensifying.<\/p>\n\n\n\n Tesla\u2019s Stock and Musk\u2019s Message to Employees<\/strong><\/p>\n\n\n\n Tesla\u2019s ongoing struggles have also impacted its stock price. Since November 2024, Tesla\u2019s stock has lost nearly 50% of its value, wiping out billions in market capitalization.<\/p>\n\n\n\n In response, Elon Musk recently addressed Tesla employees, urging them to remain patient and hold onto their company shares despite the downturn. He assured them that Tesla\u2019s long-term future remains strong, though he did not provide many details on upcoming innovations.<\/p>\n\n\n\n Retail Investors Pour $8 Billion Into Tesla in 13 Days, Setting a New Record<\/strong>
SAIC Motor (China)
Volkswagen (Germany)
Renault (France)
BMW (Germany)<\/p>\n\n\n\n
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Despite Tesla’s<\/a> 50% stock drop and ongoing controversies, retail investors have invested $8 billion into the company in just 13 days\u2014marking the biggest buying spree ever! Their confidence in Elon Musk\u2019s EV giant remains unshaken as they double down on the stock.<\/p>\n\n\n\n