Tesla's European Market Struggles Amidst Rising EV Competition

Tesla's market share in Europe has declined as sales dropped for a second month in February. Competition from traditional automakers and new Chinese entrants, alongside Europe's economic slowdown, contribute to this trend. Tesla's February sales fell by 42.6%, while overall BEV sales in Europe grew by 26.1%.

Tesla continues to face challenges in the European market as its sales declined in February for the second consecutive month, according to the European Automobile Manufacturers Association (ACEA). Despite an overall increase in electric vehicle (EV) registrations, Tesla's presence shrinks with a 42.6% drop in sales.

In February, Tesla claimed a 1.8% share of the total automotive market and a 10.3% portion of the battery-electric vehicle (BEV) market, a significant decrease from last year. The company sold fewer than 17,000 cars in Europe, a sharp decline from over 28,000 units in the same month in 2024.

As Tesla gears up for the Model Y launch, it grapples with an aging product lineup and escalated competition from both established automakers and new Chinese players in the market, compounded by CEO Elon Musk's controversial political engagements. Meanwhile, overall BEV sales in Europe climbed 26.1%, reflecting a rising demand driven by new EU emission standards and more affordable electric options.

(With inputs from agencies.)