Tesla’s performance in Europe has hit a significant setback, with February sales falling by almost 45% compared to the same period last year. According to research platform Jato Dynamics, the US electric carmaker sold fewer than 16,000 vehicles across the EU, UK, Norway, and Switzerland last month a decline that has led to its market share dropping to 9.6%, the lowest February figure in five years.
Analysts suggest that one factor contributing to the slump is a growing consumer backlash against CEO Elon Musk’s controversial political activities, including his close association with Donald Trump. Critics say that Musk’s overt political interventions, such as publicly supporting far-right groups and making provocative statements about political figures, have alienated some buyers in the European market.
Compounding these political issues, Tesla is undergoing a significant model transition as it phases out the current Model Y the brand’s bestselling model before launching an updated version. Meanwhile, competitors are gaining ground. Volkswagen, BMW, and Mini have reported substantial increases in electric vehicle sales, and Chinese rival BYD has seen a 94% surge in sales in Europe, further denting Tesla's dominance. BYD’s global revenue now tops $100bn, surpassing Tesla’s $97.7bn last year, while the two companies are neck-and-neck in terms of vehicle sales.
In the UK, however, there is a contrasting trend. The Society of Motor Manufacturers and Traders reported a 21% rise in new Tesla registrations, particularly for the Model 3 and Model Y.
