Tesla’s sheen is fading in Europe. Once the undisputed poster child for electric mobility, the company now finds itself grappling with a sobering reality: plunging sales in major European markets, waning consumer sentiment, and growing resistance to Elon Musk’s politics and persona.
Also read: Musk advocates for EU Free Trade Zone as sales decline
In April, Tesla’s new vehicle registrations fell to their lowest levels in over two years in both Germany and the UK. The numbers are stark—sales dropped 46% in Germany and a jaw-dropping 62% in the UK compared to the same month last year. These aren’t isolated dips but part of a sustained decline: Tesla has now posted four consecutive months of sales drops in Germany, culminating in a 60% year-to-date slide.
This slump comes despite an overall increase in electric vehicle (EV) sales across both markets. Germany saw EV sales grow by 53.5%, while the UK registered an 8.1% increase. In contrast, Volkswagen and Chinese manufacturer BYD posted triple-digit percentage gains, suggesting that consumer appetite for EVs is alive and well—but Tesla is no longer the default choice.
Several factors appear to be driving this shift. First, the delay in deliveries of Tesla’s revamped Model Y in Europe may have led some would-be buyers to look elsewhere. But more crucially, there’s growing evidence that Tesla is battling a deeper reputational crisis.
Elon Musk’s political entanglements—particularly his closeness to former U.S. President Donald Trump and controversial stances on government policies—are believed to be turning off European consumers. Public protests, vandalism at showrooms, and anti-Musk artwork in cities like London underscore a growing disaffection.
“In Europe, this is no longer about product cycles. It’s personal,” says Matthias Schmidt of Schmidt Automotive Research. “Tesla’s identity is inseparable from Musk’s, and his politics are alienating an increasingly values-driven consumer base.”
This cultural disconnect is exacerbated by Tesla’s shifting market share. In the UK, Tesla’s EV market share has dropped to 9.3% year-to-date, down from 12.5% a year ago. In Norway, a long-time Tesla stronghold, the company’s share has plummeted from 18% to 11%, with the majority of sales now consisting of used rather than new vehicles.
Adding to the pressure is fierce competition from legacy automakers and rising Chinese brands. Volkswagen has seen a resurgence in demand, with its battery-electric vehicles gaining strong traction across Europe. Meanwhile, BYD has defied steep European import tariffs to post a 755% jump in Germany and a 311% rise in the UK.
Tesla, meanwhile, is left navigating an increasingly crowded and politically charged landscape. Following a disappointing Q1 earnings report that saw profits fall by 71%, Musk has pledged to “spend less time in Washington” and refocus on the company’s core operations.
But whether that will be enough remains to be seen. With consumers turning to brands they perceive as more stable, sustainable, or simply less polarising, Tesla must not only deliver a compelling product—but also repair its image.
By voting with their wallets, European consumers are showing that Musk’s polarising persona and politics are hurting Tesla, to the extent that they are actively choosing an automotive future that excludes it.
