Tesla’s drop in sales slows down EV growth in Europe

Tesla’s sales in Europe plunged 49% last month compared with a year earlier, even as battery-electric vehicle sales rose 27.8%, illustrating that its Model Y upgrade has yet to improve its image.

ACEA data show that overall car sales in Europe dipped 0.3% year-on-year. Electric and plug-in hybrid models posted the strongest growth, helping to balance losses elsewhere.

Tesla’s continuing slide in Europe reflects a shift away from the U.S. EV maker as competition from Chinese brands gains strength. Some buyers are also pushing back against Elon Musk’s political views.

According to a Reuters report, European automakers are under pressure to lower local costs and face headwinds from U.S. tariffs on imports and a slowing global economy. The resulting uncertainty clouds the industry’s outlook despite easing trade tensions between Washington and Beijing.

April registrations in the European Union, Britain, and the European Free Trade Association (EFTA) fell to 1.07 million cars, after a 2.8% gain in March. Sales at state-owned SAIC Motor climbed 24.5%, while Mitsubishi rose 22.1% and Mazda fell 24.5%.

Tesla’s deliveries in Europe have now dropped for four months straight, down 49% year-on-year, and its market share has nearly halved to 0.7% from 1.3%.

EU car sales drop for fourth straight month

Looking at the EU alone, total car sales fell 1.2% year-on-year, marking a fourth straight month of decline. Within that figure, registrations of battery electric vehicles (BEV) jumped 26.4%, plug-in hybrids (PHEV) gained 7.8%, and hybrid electrics (HEV) rose 20.8%.

In April, electrified models accounted for 59.2% of all passenger car registrations, up from 47.7% a year earlier.

Among major EU markets, Spain saw a 7.1% rise in sales and Italy 2.7%, while France and Germany recorded drops of 5.6% and 0.2% respectively.

Europeans are buying more electric cars because of strict emissions rules and lower prices, even as trade tensions, slow overall sales, and possible factory closures threaten jobs.