Tesla’s sales in Europe are crashing hard. In fact, they’re down by nearly 39%, to only 61,320 units over the first four months of the year. In just last month, sales dropped by 50 percent—a troubling sign for the electric vehicle company, which has already raised some alarm bells. According to new data released by the Association of European Automobile Manufacturers (ACEA), together, this data paints a troubling picture of Tesla’s standing in an increasingly competitive marketplace.
Sales have remained largely flat in the European auto market during that same timeframe. By contrast, sales of battery-electric vehicles from every other automaker collectively jumped by nearly 28%. Electric vehicle sales are surging. The other indicator that demand for electric cars is booming is sales. Yet, Tesla’s plummet is a strong indicator that the automaker is having a difficult time keeping its lead amid rapid competitors, particularly from low-cost Chinese marques.
The report, released on May 27, 2025, at 6:34 am and updated at 7:05 am, has drawn comparisons between Tesla’s performance and that of China’s SAIC. As Tesla sales sagged, SAIC notched a record setting 54% increase in sales just in the month of April. This sudden reversal highlights the difficult position Tesla finds itself in as it continues to try and adapt to a rapidly changing market environment.
Many industry professionals believe that one major factor behind Tesla’s dip in sales is the dog-fighting, or aggressive pricing tactics being used by Chinese competitors. These brands are slowly gaining momentum in Europe, winning over consumers dealing with soaring energy costs and chipping away at Tesla’s once unassailable lead. The electric vehicle market is zooming on. In order for Tesla to maintain its competitive advantage, they must do a better job at responding to this new dynamic.
