- Tesla sold 45% fewer cars in Europe last month compared to January 2024.
- BEV sales grew by 37% in Europe+EFTA+UK region, reaching a market share of 16.7%.
- Self-charging hybrids are Europe’s favorite powertrain type with a 34.9% market share.
Tesla is struggling to sell cars in Europe, with sales plummeting by 50.3% in the EU and 45.2% in the combined EU, EFTA (Iceland, Liechtenstein, Norway, and Switzerland), and UK markets in January 2025 compared to the same month last year. Surprisingly, this drop comes at a time when BEV sales across all of Europe surged by 37%, showing that demand for zero-emission vehicles isn’t the problem.
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According to data from the European Automobile Manufacturers’ Association (ACEA), Tesla sold 9,945 units in January 2025, down from 18,161 in January 2024. The drop was especially severe in Germany, where sales fell by 59.5% to just 1,277 units, and in France, with a 63% decrease to 1,143 units.
To put this in perspective, Tesla’s performance was so poor that even China’s SAIC Motors managed to sell more than twice as many cars in January, with 22,994 deliveries.
What’s Behind Tesla’s Fall?
Several factors could explain Tesla’s underwhelming performance. One likely reason is the growing negative publicity surrounding Elon Musk’s controversies, including the infamous salute and his outspoken political views, which have stirred debate across Europe. His support for Germany’s far-right AfD party and a jailed activist in the UK has reportedly damaged his public image, which in turn could be impacting Tesla’s brand perception in the region.
Another contributing factor could be the timing of the Model Y update. With the bestseller getting a significant refresh for 2025, many customers might be holding off, leading to reduced demand for the outgoing version. Additionally, Tesla had to retool its production lines for the new Model Y, which may have caused temporary supply disruptions.
Inventory shortages could also be to blame. According to Bloomberg, Tesla might be dealing with low stock levels in certain markets due to an aggressive push to boost year-end numbers in December 2024.
BEV Sales Soar Across Europe
Despite Tesla’s struggles, the overall demand for fully electric vehicles in Europe continues to grow. ACEA reports that 124,341 BEVs were sold in the EU and 166,065 units in the broader Europe+EFTA+UK region in January 2025. This represents a healthy market share of 16.7% in Europe+EFTA+UK, up from 11.9% in January 2024.
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Still, the region’s favorite powertrain type is HEVs (self-charging hybrids) with a 34.9% market share, followed by gasoline (29.2%). In contrast, the market shares of diesel (8.8%) and PHEVs (7.6%) have declined compared to last year, now falling behind BEVs.
In the EU alone, the combined market share of gasoline and diesel cars fell to 39.4% in January 2025, down from 48.7% the previous year. Overall, new car registrations in the EU decreased by 2.6% to 831,201 units, largely due to declining sales in key markets such as France (-6.2%), Italy (-5.8%), and Germany (-2.8%).
