European sales of Tesla electric vehicles fell by 49% in the first two months of the year compared to the same period last year, even as overall electric vehicle (EV) sales in the region increased, according to data from the European Automobile Manufacturers’ Association.
The sharp decline comes amid concerns about Tesla’s aging vehicle lineup and growing backlash against CEO Elon Musk. In the U.S., Musk’s ties to President Donald Trump’s administration have sparked controversy, while in Europe, his endorsement of Germany’s far-right Alternative for Germany (AfD) party in last month’s national elections drew widespread condemnation.
At the same time, Tesla is facing mounting competition from traditional automakers ramping up EV production, as well as new players like China’s BYD. On Tuesday, BYD reported record revenue of 777.1 billion yuan ($107 billion) for 2024, driven by a 40% jump in sales of its electric and hybrid vehicles. The company also recently unveiled an ultra-fast EV charging system, which it claims offers charging speeds nearly as fast as refueling a gas-powered vehicle.
Tesla’s sales in Europe for January and February dropped to 19,046 units, down from 37,311 during the same period last year. This slump contrasts with the broader trend in the region, where total battery-electric car sales surged by 28.4%.
In Germany, Musk’s endorsement of AfD has drawn strong criticism from politicians and media outlets. Meanwhile, Tesla dealerships and vehicles have been targeted by protesters in both the U.S. and Europe, condemning Musk’s political affiliations and his advisory role to Trump in reshaping the federal government.
Tesla’s struggles are not confined to Europe. The company reported its first annual sales decline in over a decade in January. Additionally, the launch of the Tesla Cybertruck has been plagued with issues, including multiple recalls. Last week, the company recalled nearly allCybertrucks on the road after discovering that the panels on the left and right sides of the windshield could detach while driving.
This latest recall marks the eighth for the Cybertruck since customer deliveries began just over a year ago, adding to Tesla’s growing list of challenges as it navigates political backlash, increased competition, and concerns about product reliability.