Tesla sales sank again in Europe last month as rising competition and Elon Musk's ties to U.S. President Donald Trump cut into demand despite a growing electric car market, industry figures showed on Wednesday.
Sales of battery-electric vehicles jumped by 25% in Europe in May compared to the same month last year, according to the ACEA, the trade association of European car manufacturers.
Tesla, meanwhile, sold 40.2% fewer cars in May.
The drop in demand for Tesla cars has been linked to its ageing fleet, competition from European and Chinese rivals, and consumer distaste for Musk's work in the Trump administration.
Musk left his role as the U.S. government's cost-cutter at the end of May and had a public falling-out with Trump earlier this month over the U.S. president's spending bill.
During the first five months of 2025, Tesla sales fell 45.2% from the same period last year.
The U.S. company's market share of Europe's total automobile market has fallen to 1.1% from 2% last year.
Tesla's slump comes as EV sales in Europe rebounded by 26.1% in the first five months of the year.
Battery-electric cars accounted for 15.4% of all cars sold in May, up from 12.1% in the same month last year.
The EV market share is "still far from where it needs and was expected to be," said ACEA chief Sigrid de Vries.
The EU aims to end sales of new internal combustion engine cars in 2035, but high prices and a perceived lack of charging infrastructure have given consumers pause.
"Consumer reluctance is by no means a myth, and we need to incentivise a supportive ecosystem – from charging infrastructure to fiscal incentives – to ensure the uptake of battery-electric models can meaningfully accelerate," added de Vries.
Overall, car sales rose by 1.6% in Europe last month, but were down by 0.6% in the first five months of the year.
