From star to scandal: Tesla sales freefall all over Europe

Tesla is facing a deepening crisis across Europe. Its sales keep plummeting, and the brand is experiencing increased politicized action. Once the undisputed leader of the electric revolution, Tesla is now struggling to hold its ground in key European markets. Sales have fallen to their lowest in four years in countries like France, Sweden, and Belgium.

In March, Tesla registrations in France dropped 36.8% compared to the same month last year, down to just over 3,100 units. In Sweden, the drop was even more dramatic, down nearly 64%. Belgium reported a staggering 70% year-over-year decline, while the Netherlands saw sales fall by over 60%. The brand’s French market share has now sunk to around 1.6%, overtaken by the combined force of Chinese EV makers like BYD, which have collectively surged past 3%.

Wall Street holds its breath

All in all, deliveries are down by 43% in Europe. That’s in a commercial field where the car market is experiencing a slight downturn. Still, the electric category is counteracting with a surge of 31%, according to the latest figures of ACEA. Wall Street is holding its breath as Tesla is expected to report its global Q1 sales this week. 

Industry insiders cite multiple reasons behind the downturn. The brand is being weighed down by an aging product lineup, more affordable and fresher competition from Chinese and European automakers, and the growing backlash against CEO Elon Musk. 

Once celebrated as a disruptor, Musk has increasingly become a polarizing figure. His support for Donald Trump and sympathy for far-right movements in Europe—like the AfD in Germany—led to calls for boycotts.

Last in line was his condemnation of Marine Le Pen’s conviction in court. Last weekend, a dealership in Rome was set ablaze, destroying 17 cars in total. The Italian authorities investigated under the suspicion of arson; Musk called it a “terrorist attack”.

“Elon Musk is undeniably a factor whose behavior is impacting the perception and sales of the brand,” said Stephanie Valdez Streaty of Cox Automotive to the Walloon newspaper Le Soir. 

“Deport the Nazi”

In Norway, often seen as the global benchmark for electric car adoption, the decline eased in March, with sales dipping just 1%. However, over the year, the sales have halved as well. Also, in the U.S., opposition against Tesla is rising.

Protesters in New York have carried signs declaring “Tesla funds fascism” or “Deport the Nazi” referring to a picture of Musk saluting at Trump’s election victory. These activists accuse Musk of using his fortune to undermine democratic institutions.

While official competitors have largely refrained from commenting publicly on Tesla’s woes, some automakers are quietly moving to capture its disillusioned customer base. Volkswagen, for example, has admitted to actively targeting Tesla owners through email campaigns and social media monitoring. Polestar follows suit with a special offer to conquest customers.

Lack of an affordable EV

Other brands are more cautious. Stellantis and Renault declined to address Tesla’s decline directly, focusing instead on their new offerings.

Meanwhile, Chinese automaker BYD, which also supplies batteries to Tesla, said there is no reason to gloat. As a supplier to Tesla, BYD is involved indirectly. Analysts caution against assuming that Tesla’s lost ground is anyone’s immediate gain.

Yet with no entry into the small electric segment—now Europe’s fastest-growing category—Tesla’s product gaps are becoming more visible. For now, the facelifted Model Y, bearing the title of the world’s best-selling EV and car, doesn’t seem capable of remedying the negative trend for Tesla.