Tesla, once the undisputed trailblazer of the electric vehicle boom, is facing a major setback in Europe. The brand's stronghold has weakened dramatically, with sales plummeting and consumers increasingly turning away—not because of the cars, but because of the man behind them: Elon Musk.
Sharp Decline as Boycott Bites
According to The Telegraph, Tesla's European sales halved in April, plunging from 11,540 vehicles last year to just 5,475—a 53% drop. The slump is largely attributed to an ongoing boycott of the brand, driven by Musk's increasingly vocal support of Donald Trump.
The figures, released by industry group ACEA, paint a stark picture for the company. Even as Europe's electric vehicle (EV) market expanded by more than 26% overall, Tesla saw its fourth consecutive monthly decline. Meanwhile, Tesla's profits have fallen to a five-year low, and its stock price has dropped nearly 20% from its peak.
Sales Tank While Rivals Surge
Tesla's downturn is especially striking given that the broader EV market in Europe is thriving. Battery-electric vehicle sales now account for 15.3% of new car sales, with hybrid vehicles continuing to dominate.
Yet Tesla's grip is slipping. Its January-to-April numbers reflect a consistent downward trajectory—contrary to industry momentum. The company's political baggage is proving costly. Musk's public support of Trump and his brief role leading the administration's 'DOGE' unit have triggered a backlash from left-leaning consumers and activists across Europe.
In some cases, protest has gone beyond boycotts: there have been arson attacks on Tesla showrooms, a clear sign of intensifying frustration.
Musk Steps Back from Politics—Sort Of
In response to Tesla's faltering performance and a declining stock, Musk announced last week that he would step away from his unofficial White House role to refocus on his businesses.
'I'm back to spending 24/7 at work and sleeping in conference/server/factory rooms,' he wrote on X, adding that his priorities were now X, xAI, Tesla, and the upcoming Starship launch.
Despite the recommitment, many analysts argue that the damage has already been done—and that Tesla's woes run deeper than politics.
Back to spending 24/7 at work and sleeping in conference/server/factory rooms.
— Elon Musk (@elonmusk) May 24, 2025
I must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.
As evidenced by the 𝕏 uptime issues this week, major operational…
Under Pressure from Cheaper Rivals
Tesla is also facing fierce competition, especially from Chinese manufacturers like BYD, which outsold Tesla in Europe last month. While Tesla has launched an updated Model Y, it hasn't done enough to counteract the growing demand for more affordable EVs.
Germany has been the key growth engine behind Europe's EV sales boom, while France saw a 4.4% dip in electric car registrations following cuts to state subsidies. Tesla's performance, meanwhile, continues to lag.
Despite these challenges, Europe's overall car market showed modest signs of recovery in April, with a 1.3% increase in sales compared to the previous month. The ACEA remains cautiously optimistic, even as new emissions rules loom and global economic uncertainty persists.
Can Tesla Regain Ground?
The collapse of Tesla's European sales reflects a volatile mix of political backlash, brand fatigue, rising competition, and subsidy shifts. Whether the company can pivot effectively—by refocusing on product innovation or repositioning its brand image—remains to be seen.
What's clear is this: Tesla is no longer the only EV game in town. And in today's climate-conscious, politically charged market, leadership matters just as much as the tech under the hood.
