Tesla’s European Vehicle Sales Plummet for the Fifth Consecutive Month as Buyers Opt for Chinese Electric Cars

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A photo shows an electric car connected to a Tesla charging station (Tesla Supercharger) in Chasse-sur-Rhone, central France, on June 6, 2025. Alex Martin | Afp | Getty Images

Tesla's new car sales in Europe fell for a fifth straight month in May, according to data from the European Automobile Manufacturers Association (ACEA), as customers turned to more affordable Chinese electric vehicles. Data published Wednesday by ACEA revealed that Tesla's car sales in the European Union, Britain, and the European Free Trade Association dropped to 13,863 units in May, marking a 27.9% decrease year on year. Tesla's European market share also declined to 1.2% from 1.8% in May 2024.

Overall car sales in Europe indicate a downward trend for the U.S. electric vehicle maker, which has experienced brand and reputational challenges, partly due to CEO Elon Musk's controversial rhetoric and political activities. Musk invested nearly $300 million to support the election of U.S. President Donald Trump for a second term and led a turbulent initiative to reduce federal agencies, sparking protests at Tesla dealerships across Europe.

Despite leaving the Trump administration and navigating a contentious online dispute with the U.S. president, Musk continues to face intense competition from both traditional automakers and Chinese brands. For example, the auto giant BYD registered nearly as many vehicles as Tesla in May, outselling Musk's company for the first time in April.

There was hope that Tesla's revamped Model Y compact sport utility vehicle could help turn around the firm's fortunes, and it was recently noted as a key factor in boosting new car sales in Norway. Tesla shares fell nearly 5% on Wednesday morning, with the stock down over 18% year-to-date.

Rising competition from Chinese manufacturers shows strong momentum in Europe's new car market, despite European Union tariffs affecting Beijing's EVs. Chinese automakers sold 65,808 units last month, more than doubling their market share in the region to 5.9%, according to data published Tuesday by JATO Dynamics. Felipe Munoz, a global analyst at JATO Dynamics, noted that "despite the EU's imposition of tariffs on Chinese electric vehicles, their brands continue to achieve robust growth across Europe." He added that their success stems partly from their push for alternative powertrains, including plug-in hybrids and full hybrids, in the region.

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