Elon Musk’s electric vehicle company, Tesla, has continued its sales slump in Europe for the fifth consecutive month this year.
According to new car registration data released by the European Automobile Manufacturers’ Association (ACEA) on June 25, 2025 (local time), Tesla registered 13,863 vehicles across Europe in May, a 27.9% decrease from 19,227 units in May 2024.

Tesla’s market share in the European automotive market also fell from 1.8% to 1.2% over the past year. In contrast, the overall European electric vehicle (EV) market saw a 27.2% increase in registrations in May compared to the previous year, highlighting Tesla’s significant divergence from the market’s growth trend.
Reuters and U.S. financial media outlet CNBC reported that Tesla has recorded sales declines in Europe for five straight months.

Analysts attribute Tesla’s struggles to a combination of consumer backlash in Europe due to Musk’s prominent political activities—particularly his role as head of the U.S. Department of Government Efficiency (DOGE) under the Trump administration—and the rising competitiveness of Chinese EV manufacturers.
According to data from European market research firm JATO Dynamics, Chinese automakers sold a total of 65,808 vehicles in Europe in May, doubling their market share from 2.9% a year ago to 5.9%.

Chinese automaker BYD saw a 397% surge in new car registrations compared to the previous year. After surpassing Tesla in April for the first time, BYD’s registrations in May were slightly below Tesla’s.

JATO Dynamics analyst Felipe Muñoz noted, “Despite high tariffs imposed by the European Union on Chinese EVs, Chinese brands continue to record strong growth across Europe. Their momentum is driven by actively selling alternative powertrains, such as hybrids, in the European market.”

On the New York Stock Exchange, Tesla’s stock was trading at $326.10 as of 1:00 p.m. Eastern Time on June 25, down 4.22% from the previous day.

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