Tesla's market share in Europe kept tumbling year-over-year in February, data showed on Tuesday, as the all-electric carmaker's sales fell for a second consecutive month, even though electric vehicle registrations across the continent increased overall, as Elon Musk's politics and aging models may be turning consumers away.
As competition grows and a slowdown in European economies hampers total car sales, Elon Musk's battery-electric (BEV) brand has sold 42.6% fewer cars in Europe so far this year, data from the European Automobile Manufacturers Association (ACEA) showed.
Tesla commanded 1.8% of the total market and 10.3% of the BEV market in February, down from 2.8% and 21.6% last year.
It sold fewer than 17,000 cars in the European Union, Britain and European Free Trade Association countries, compared to over 28,000 in the same month in 2024.
Tesla currently faces a number of challenges in Europe, ahead of the launch of its new Model Y mid-size SUV this month. The EV maker has a smaller, aging lineup while traditional automaker rivals and new Chinese entrants alike continue to launch new, often cheaper electric models.
Musk, the company's CEO, has also stirred controversy by courting far-right parties in Europe, which has added to Tesla's sales slump.
Overall, BEV sales in the same markets last month were up 26.1% versus February 2024, even as total car sales fell 3.1%, according to the ACEA.
A growing interest in electric cars in the world's second-biggest EV market is largely due to new EU emission targets and the launch of cheaper electric models, market experts say, but it is not enough to compensate for shrinking demand for petrol and diesel cars.
"We continue to expect global auto volume essentially flat" this year, Citi analysts said in a note.
An EU filing showed last week that Tesla had formed a pool to sell carbon credits to more than half a dozen automakers as they try to meet European CO2 emission targets which came into effect in January.
While based on 2024 figures, analysts estimate that Tesla's sales can more than compensate for those companies' emissions, the situation might change if its sales continue to drop.
The EU introduced the targets to help EV pickup in the bloc, but it is expected to approve on Tuesday a relaxation of those measures, to allow a three-year averaging of fleet emissions.
Tesla's older models are facing growing competition from newer Chinese and European cars.
But the brand's image has also taken a hit in Europe as Musk has backed a far-right party in Germany and has played a major role in President Donald Trump's administration, whose ties with the EU have been tense.
Several Tesla dealerships around the United States have been vandalized in recent weeks and the company's stock price has plummeted over the past month.
There have also been several incidents targeting Teslas in Germany – Europe's biggest auto market – in recent months, with at least eight cars set ablaze since the start of the year.
"A lot of people disagree with (Musk's) views," Matthieu Noel, an analyst at global consultancy Roland Berger, told Agence France-Presse (AFP).
But, he added, it is still difficult to say at this stage whether "this has a real impact on the brand or if it is temporary."
While total new car registrations in the EU fell 3.4% in February, BEV sales jumped 23.7%, a second consecutive increase, while hybrid car (HEV) sales rose 19%.
Electrified vehicles – either BEV, HEV or plug-in hybrids (PHEV) – sold in the bloc accounted for 58.4% of all passenger car registrations in February, up from 48.2% a year earlier.
"2025 has started really brightly for Europe's electric car market," E-Mobility Europe's Secretary General Chris Heron told Reuters.
"We are seeing the early impacts from manufacturer plans to meet the EU's scheduled CO2 limits".
Among Europe's top-selling brands, Volkswagen and Renault's sales rose 4% and 10.8%, respectively, from a year earlier in the EU, Britain and European Free Trade Association countries in February, while Stellantis' sales fell 16.2%.
Sales at SAIC Motor rose by 26.1% from a year earlier despite the impact of EU tariffs on Chinese-made EVs, while they were down 15% at Geely-owned Volvo.
The market share of brands not accounted for by the ACEA, including BYD and other Chinese carmakers, rose to 2.5% from 1.5% a year before.
Total car sales in Spain rose 11% year-over-year in the month, while they declined in other major markets, with registrations falling 6.4% in Germany, 6.2% in Italy and 0.7% in France.
