Tesla Free Falls in Europe as Sales Drop for Fifth Straight Month

Tesla is experiencing a free fall in Europe, with no signs of improvement in the foreseeable future. Sales figures published today by the European Automobile Manufacturers’ Association (ACEA) show demand dropped yet again in May, marking the fifth consecutive month of declining sales. A look at the numbers highlights just how much Tesla is struggling in the European Union, the United Kingdom, and the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland.

2025 got off to a rocky start for Tesla, with sales in the EU, UK, and EFTA dropping by 45.2% to 9,945 units compared to January 2024. February was nearly as bad, with deliveries plummeting by 40.1% to 16,888 electric cars year-over-year. March wasn’t much better, with shipments down 28.2% to 28,502 EVs. April was especially rough, as demand nearly halved, falling by 49% to just 7,261 cars. In May, Tesla’s sales declined by 27.9% to 13,863 vehicles.

All told, Tesla sales collapsed by more than a third in the first five months of the year, dropping 37.1% to 75,196 units. ACEA appears to have made some adjustments to previously published numbers, as the monthly totals add up to a slightly higher figure of 76,459 units. Nevertheless, the company’s market share in the EU, UK, and EFTA region declined from 2.1% to just 1.3%.

Why is Tesla on a downward spiral? It’s not because the electric car market is shrinking; on the contrary, it’s growing. The same ACEA reports EVs reached a 17.1% market share through May, up from 13.1% during the same period in 2024. If we’re talking strictly in terms of the EU, cars without combustion engines accounted for 15.4% of sales in the first five months, compared to 12.1% in the January-May 2024 period.

So why is Tesla having such a rough time in Europe? It’s difficult to quantify the impact of Elon Musk’s political choices on sales, but the CEO’s controversial behavior is only part of the story. The EV segment is becoming increasingly competitive on the continent, with Chinese automakers rolling out more models, many of which are significantly cheaper than those offered by legacy brands.

Photo by: Tesla

Additionally, Tesla’s lineup is getting a bit long in the tooth, despite receiving updates in recent years. The Model S is now 13 years old. The Model X isn’t far behind, having debuted a decade ago. The Model 3 arrived in 2017, followed by the Model Y in 2020. Tesla once had a clear technological advantage, but its competitors have since caught up.

A cheaper car positioned below the Model 3 could change the game, but it’s still nowhere in sight. Reuters reported in April 2024 that plans for an entry-level EV had been scrapped, but Musk quickly denied the claim. He posted on his X social media platform that “Reuters is lying (again).” Last April, the news agency alleged Tesla had also delayed the launch of a cheaper Model Y by several months and that a stripped-down Model 3 is in development.

It will be difficult for Tesla to bounce back given the wide variety of EVs now available in Europe. If the EU sticks to its 2035 sales ban on new combustion-engine cars, automakers will be forced to focus entirely on electric vehicles within the next decade. That would make things even tougher for Tesla unless the company manages to get its mojo back in the meantime.