Sales of electric cars in Europe are growing, but not for Tesla
25 April 10:09
According to the European Automobile Manufacturers Association (ACEA), sales of new Tesla cars in Europe decreased by 28.2% in March compared to last year, although overall sales of electric vehicles with battery packs increased by 23.6% during this period. This was reported by "Komersant Ukrainian" with reference to Reuters.
Total new car sales in Europe rose 2.8% during the month, driven by double-digit growth in the UK and Spain. Growth in electric vehicle sales offset a drop in sales of gasoline and diesel cars.
Why it matters
The drop in Tesla’s sales in Europe adds to evidence that drivers are turning away from Elon Musk’s electric car brand due to increased competition from China and protests against his political views.
European automakers are also struggling with competition from China, while also trying to reduce high costs in their home markets and facing the impact of U.S. President Donald Trump’s 25 percent tariffs on auto imports, making the outlook for the industry uncertain.
trump’s 145 percent taxes on Chinese imports – and Beijing’s retaliatory tariffs – have also lowered global growth forecasts, creating new risks for automotive companies.
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By the numbers
According to ACEA, sales in March in the European Union, the United Kingdom, and the European Free Trade Association rose to 1.42 million vehicles after falling for two months.
Registrations at Volkswagen and Renault grew by 10.3% and 13.0%, respectively, while at Stellantis they fell by 5.9%.
Tesla’s sales declined for the third consecutive month, down 28.2% year-on-year, and its share of the total market fell to 2%, down from 2.9% a year earlier.
In the EU, overall vehicle sales declined by 0.2% year-on-year, falling for the third consecutive month, although registrations of battery electric vehicles (BEVs), hybrid electric vehicles (HEVs) and plug-in hybrid vehicles (PHEVs) increased by 17.1%, 23.9% and 12.4%, respectively.
Electrified cars – BEV, HEV or PHEV – sold in the EU accounted for 59.2% of passenger car registrations in March, up from 49.1% in the previous year.
Among the largest EU markets, sales in Spain and Italy grew by 23.2% and 6.3%, respectively, while in France and Germany they fell by 14.5% and 3.9%.
In the UK, registrations increased by 12.4%.
European context
Market experts say that the growing interest in electric vehicles in Europe, the world’s second-largest electric vehicle market, is driven mainly by new EU emissions targets and the launch of cheaper electric models, although the EU has recently proposed to relax these targets.
Tesla: a revolution on wheels
Tesla, founded in 2003 by Martin Eberhardt and Mark Tarpenning, has become synonymous with the revolution in the automotive industry under the leadership of Elon Musk, who joined the company as an investor and later became its CEO. The company has revolutionized the concept of electric vehicles, transforming them from clumsy, limited range and unattractive vehicles into stylish, powerful and technologically advanced cars. The launch of the Tesla Roadster in 2008, the first production electric vehicle with a range of more than 320 kilometers, was a bold challenge to the entire automotive industry and ushered in a new era.
Unlike traditional automakers, Tesla has created a vertically integrated ecosystem that includes battery production at gigafactories, an extensive network of Supercharger charging stations, and revolutionary software that can be updated from the air. The Model S, introduced in 2012, was a breakthrough in the premium sedan market, and the more affordable Model 3, launched in 2017, turned Tesla from a niche manufacturer into a massive automotive giant. The company is also known for its ambitious autonomous driving projects, although Musk’s promises of fully self-driving cars have repeatedly faced technical and regulatory obstacles.
Tesla’s journey has not been smooth sailing – the company went through “production hell” while scaling up Model 3 production, facing criticism over build quality, car recalls, and accident investigations related to the Autopilot system. However, despite all the difficulties, Tesla has changed the automotive industry forever, forcing all major manufacturers to invest billions in the development of electric vehicles. In 2021, Tesla reached an important milestone, becoming one of the few companies with a market capitalization of more than a trillion dollars, although this value has fluctuated over time. The story of Tesla is not just a story of a car company, but a story of how determination, innovation, and out-of-the-box thinking can transform an entire industry despite skepticism and numerous obstacles.
Recently, Tesla has faced problems caused by Elon Musk’s political activity and public statements, which have a negative impact on the company’s reputation, consumer confidence, and financial performance. In particular, Musk’s rapprochement with former US President Donald Trump and his active role in politics have polarized the perception of the Tesla brand. This has led to a wave of protests, consumer boycotts, and even attacks on the company’s stores and cars around the world. In 2024, Tesla recorded the first annual drop in global sales in more than a decade, and after two months in the White House, many owners began to exchange their Tesla electric cars for other brands.
Some of Musk’s statements also affected investors: his controversial “peace proposal” to end the Russian-Ukrainian war, posted on Twitter, caused a sharp reaction and coincided with a one-day drop in Tesla shares by almost 9%.
Amid these events, Tesla’s financial results deteriorated: in the first months of 2025, the company’s shares lost more than a third of their value, and net profit in the first quarter of 2025 decreased by 71%. In its financial report, the company warned that a change in political sentiment could significantly reduce demand for its products, and Musk himself admitted that Tesla is currently facing a negative public reaction to its political activities.
