As Europe sets new records for electric car sales, Tesla's April registrations almost halved (April 2024 / April 2025). Has the electric mobility pioneer lost momentum? We analyze Tesla's decline in EU sales.
In April, Europe experienced a real electric makeover: sales of purely electric cars increased by 27.8 % to 184,685 units compared to 2024, and their market share among new registrations grew to 15.3 %. We analyze the sales decline Tesla in the EU, as at the same time Tesla, the former leader in the transition to zero emissions, saw a nearly 49% drop in registrations⁽¹⁾. How did such a steep drop come about?
The new Tesla Model Y is only competitively priced compared to the competition. Teslas have never been cheap. But 50,000 euros for a larger battery is an amount that will convince buyers to look elsewhere.
Europe: electric wave and the fight for market share – Tesla sales drop in the EU
Europe is no longer so far behind: from Norway to Spain, almost every established manufacturer offers at least one electric model, often cheaper than Tesla. Chinese products are accessible and competitively priced, Korean manufacturers boast long ranges, and traditional German brands remain popular among European buyers.
“The electric vehicle sales wave is unstoppable,” notes ACEA’s chief analyst. “And Tesla – ironically – has been left on the bench.”⁽¹⁾
The newly redesigned Tesla X is only redesigned on paper. But buyers need a “visual” redesign because they buy with their eyes.
Tesla on the test – Tesla sales drop in the EU
Tesla sales drop in the EU?! What happened to the titan of the automotive world, which took the leading position with the Model 3 in 2017? Explanations about factory interruptions and Model Y updates do not stand up to criticism, as stocks are full and production lines are running smoothly. The key problem is that the new Model Y in Europe did not arouse the expected enthusiasm, and demand remained “slightly lukewarm.” We can also partly blame the pricing policy, as the Tesla Model Y with a dual motor and a larger battery with some extras quickly exceeded 50,000 euros. On the other hand, Volkswagen offered the new Volwswagen Passat PHEV – a plug-in hybrid – for a price of around 43,000 euros. For a car with a 100-kilometer electric range – a good price.
- Too many competitors, not enough uniqueness. Europeans are turning to Chinese brands (BYD, MG, Polestar), which offer affordable prices and long ranges. And of course, a bunch of EU brands, which have quite a few new electric cars for interesting money.
- Unexpected political twists. In a time when a single tweet can change market prices, European buyers are reluctant to take shortcuts with the CEO. With Tesla, you really don't know how much the cars will cost next month. Many are speculating that the price will drop a bit more.
- Extended platforms. The Model S and Model 3 have been on the market for more than seven and almost twelve years, respectively. The updates only bring cosmetic fixes, while the old design remains underneath. Although Tesla is constantly updating its cars, people are visual creatures who need to see external changes.
Price reduction or new model?
The only means Tesla can use are to lower prices or launch an entirely new model – but both options have been circulating for a long time:
- Price maneuvers: Price cuts have become routine, while the 7,500 $ subsidy is expiring in the US, which will further squeeze margins.
- New models: Cybertruck is currently collecting more smiles than orders and is not available in the EU, while Cybercab may be an interesting novelty, but not for the mass market, because not for the next three years. However, Tesla still has a huge advantage in FSD driving and if the predictions are correct, it can revolutionize the industry at the right moment. And sell AI driving to giants like Ford and other American manufacturers.
What does the future hold?
Tesla's future is now tied to one thing: autonomous driving without driver intervention
- Trust is the most difficult to build, especially after years of public demonstrations of unfinished systems.
- Competition is not resting on its laurels in the field of future mobility: Waymo, Mobileye, Baidu and even Mercedes are already making progress with self-driving taxis.
If Elon Musk wants to stop the decline in registrations with “Master Plan Part ∞” (read: “AI will solve everything”), he needs to offer Europe something extraordinary: “A Model Y that drives itself, pays for parking itself, and takes out the trash itself.” Without this, Tesla will remain an expensive toy for enthusiasts, not a mass trend.
Conclusion: a key moment in Tesla history
April 2025 will be remembered as the month when Europe loudly shouted “Enough!” and turned its back on the former king of EVs. If Tesla wants to keep its throne, it will have to offer more than just a facelift for its old models. And while Elon Musk is predicting a future of autonomous driving, Europeans vote with their wallets – and they have already passed on to the competition.
