Tesla's Struggle in Europe Amid Soaring Electric Vehicle Market

Tesla's new car sales in Europe declined by 27.9% in May despite a surge in fully-electric vehicle sales across the continent. The American EV maker is losing market share to cheaper Chinese rivals, and its revamped Model Y has not boosted sales. Meanwhile, overall car sales in Europe have risen slightly.


Devdiscourse News Desk | Updated: 25-06-2025 13:22 IST | Created: 25-06-2025 13:22 IST
Tesla's Struggle in Europe Amid Soaring Electric Vehicle Market
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Tesla's new car sales in Europe experienced a notable decline of 27.9% in May compared to the previous year, even as the region saw a 27.2% increase in fully-electric vehicle sales. The U.S. EV giant's revised Model Y has yet to make a significant impact in reviving its European market performance.

The decline in Tesla's European sales marks the fifth consecutive month of decreasing numbers, largely attributed to customers opting for more affordable Chinese electric vehicles. Additionally, some consumers have distanced themselves from Tesla due to CEO Elon Musk's political stances.

Despite challenges, overall car sales in Europe rose by 1.9%, buoyed by growth in plug-in hybrids and vehicles powered by alternative fuels. This growth occurred as Chinese automakers doubled their market share to 5.9%, despite EU tariffs on Chinese EVs, presenting a formidable challenge to Tesla's European strategy.

(With inputs from agencies.)

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