Tesla is rapidly losing popularity among European car buyers. In Germany, which leads the continent in car sales, Tesla’s numbers have dropped sharply. According to Germany’s Federal Motor Transport Authority (KBA), new Tesla registrations in May were down by over 33% compared to the same month last year.
This decline marks the fifth straight month of falling Tesla sales in Germany. Interestingly, overall electric vehicle (EV) sales in the country increased, showing that Germans still want EVs — just not Teslas.
Elon Musk’s Politics Add to Trouble
Experts believe Elon Musk’s political views are part of the reason behind Tesla’s poor performance. Musk recently endorsed Germany’s far-right AfD party, ahead of the country’s elections. He also holds strong anti-union views, which have caused friction with labour groups in Scandinavia.
Additionally, Musk contributed nearly $300 million to help Donald Trump’s re-election campaign. He also supported efforts to shrink U.S. federal agencies. These actions sparked protests outside Tesla showrooms across Europe.
BYD and Other EV Makers on the Rise
At the same time, Chinese EV makers like BYD are thriving. In Germany, BYD’s sales have increased nine times compared to last year. Earlier this year, BYD overtook Tesla as the world’s top EV seller.
To beat European tariffs on Chinese-made cars, BYD plans to build factories in Hungary and Turkey. The company also aims to raise up to $5.2 billion by selling shares in Hong Kong. This money will help expand its global reach.
Tesla’s Sales Tumble Across Europe
Tesla is also losing ground in other European markets:
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In Britain, sales fell by over 45% in May, dropping from 3,244 units last year to just 1,758.
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In France, sales plunged by 67%.
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In Spain, Tesla saw a 29% drop.
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In Sweden, sales fell by 53%.
However, Norway was an exception. There, sales tripled, mainly due to strong demand for the updated Model Y.
Why Are Tesla’s Sales Falling?
Analysts say Tesla’s decline stems from three major issues:
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Rising competition from Chinese carmakers like BYD.
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New EU tariffs affecting EV pricing.
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Public backlash against Musk’s political activism and controversial stances.
Even though Elon Musk claimed the “European market is quite weak,” data tells a different story. EV sales across Europe are growing, meaning Tesla is losing market share — not because the market is shrinking, but because buyers are choosing other brands.
Production Issues Add to Tesla’s Woes
Tesla’s Berlin Gigafactory, which supplies most of Europe, is also facing problems. Ongoing production delays and retooling efforts at the plant have added pressure on the company, contributing further to its slumping sales.