Tesla has a Europe problem

Tesla’s sales plummeted by more than half across the European Union last month even as the bloc’s overall electric car market grew.

Tesla’s sales plummeted by more than half across the European Union last month even as the bloc’s overall electric car market grew. New registrations for Tesla (TSLA) vehicles fell nearly 53% across the EU in April compared with the same month in 2024, according to data released Tuesday by the European Automobile Manufacturers’ Association (ACEA). Across the broader region — which includes the United Kingdom, Norway and Switzerland — sales cratered by 49% that same month compared to last year, the data showed. It marks the fourth consecutive month of declining annual sales for Tesla in Europe and comes as the automaker faces trouble on two big fronts: backlash from consumers over CEO Elon Musk’s politics and intensifying competition from Chinese electric vehicle (EV) makers. As in the United States, Musk’s behavior in recent months has provoked repercussions and protests from people in Europe. The billionaire has backed some far-right political candidates in Germany and the UK, and played a prominent role in US President Donald Trump’s second administration, spearheading efforts to lay off thousands of federal workers. April also marked the first time that Chinese rival BYD overtook Tesla to sell more vehicles in Europe, according to data from Jato Dynamics, a research firm. The difference was slight — BYD sold 66 more battery EVs (BEVs) than Tesla that month — but the “implications are enormous,” Felipe Munoz, global analyst at JATO Dynamics, said in a statement last week. “This is a watershed moment for Europe’s car market, particularly when you consider that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022,” Munoz said.