Tesla’s European EV Sales Drop 53% in April Amid Rising Chinese Competition

Tesla’s electric vehicle (EV) sales in Europe took a significant hit in April 2025, with new-car registrations dropping nearly 53% to 5,475 vehicles, according to the European Automobile Manufacturers’ Association (ACEA). This marks the fourth consecutive month of decline for the EV giant, as Chinese competitors like BYD gain ground in the rapidly growing European EV market, reports the Wall Street Journal.

Tesla’s Sales Slump in a Growing Market

The ACEA data reveals a troubling trend for Tesla, with sales across the European Union (EU) falling 49% to 7,261 vehicles when including the U.K., Iceland, Liechtenstein, Norway, and Switzerland. This follows year-over-year declines of 36% in March, 47% in February, and 50% in January. Meanwhile, the broader EU EV market is thriving—battery-electric vehicle sales between January and April rose over 26% compared to the same period in 2024. Hybrid-electric cars grew by 21%, and plug-in hybrids saw a 7.8% increase. Tesla’s struggles stand out against this backdrop of industry growth, highlighting the challenges the company faces in maintaining its market position.

Chinese Automakers Outpace Tesla

A key factor in Tesla’s decline is the rise of Chinese automakers. In April, BYD sold more electric vehicles in Europe than Tesla for the first time, according to consumer-research group JATO Dynamics. State-owned SAIC Motor also surpassed Tesla in the region last month, as reported by the ACEA. Chinese manufacturers are leveraging competitive pricing to capture market share, putting pressure on Tesla and prompting several European carmakers to adjust their sales and profitability forecasts. This shift underscores the increasing influence of Chinese EVs in Europe, where cost-conscious consumers are driving demand for affordable options.

Industry Challenges and Leadership Concerns

Tesla’s European downturn coincides with broader challenges for the company. Elon Musk, Tesla’s CEO, has faced scrutiny from investors over his focus. In April, Musk acknowledged the concerns, stating, “he was going to spend less time in Washington and more overseeing the company as investors were concerned that he had taken his eye off the ball,” according to the Wall Street Journal. This admission comes as Tesla grapples with backlash from Musk’s role in the Trump administration, which may be impacting the brand’s appeal in Europe, a region known for its progressive stance on sustainability.

Implications for the EV Industry

The competitive landscape in Europe’s EV market is shifting rapidly. Tesla’s declining sales could signal a broader trend where pricing and innovation from Chinese automakers like BYD and SAIC Motor reshape consumer preferences. For EV enthusiasts and owners, this means more options at lower price points, but it also raises questions about Tesla’s ability to maintain its leadership in the global EV space. European carmakers are now forced to rethink their strategies, with some already revising profit forecasts due to the influx of affordable Chinese EVs.

Overall, EU passenger-car registrations from January to April dropped 1.2% year-over-year to 3,640,211 vehicles, with sales declines of 3.3% in Germany, 7.3% in France, and 0.6% in Italy, per ACEA data. Tesla’s 53% sales drop in April—equating to a reduction of roughly 6,150 vehicles from the previous year—stands out as a significant outlier in an otherwise growing EV sector. As Chinese automakers continue to expand their foothold, Tesla will need to innovate and adapt to reclaim its dominance in the European market.

Photos reproduites avec l'aimable autorisation de Tesla.