Tesla’s Europe Sales Plunge 45% as Musk’s Ties to Trump Spark Controversy

Tesla’s European sales suffered a dramatic blow last month, dropping 44% in 25 markets in the EU, UK, Norway, and Switzerland. The electric car behemoth sold less than 16,000 vehicles in February, its lowest regional market share in five years. The fall follows the same pattern in January when sales fell 45%, from 18,161 in 2024 to only 9,945 units.

Political Affiliations and Consumer Backlash

Elon Musk’s increasing politicization, such as his status as a prominent member of Donald Trump’s cabinet, has made investors and analysts nervous. His recent support for Germany’s far-right AfD party, provocative public comments, and attendance at conservative gatherings have drawn ire. Even some Tesla dealerships have been the subject of protests, indicating that his political affiliation might be affecting consumer attitudes.

Tesla’s Model Y Overhaul Also Impacts Sales

In addition to Musk’s political ties, analysts believe that Tesla‘s shift to a new model of its top-selling Model Y has also been an impact factor. Felipe Muñoz, a Jato Dynamics global analyst, commented, “Tesla is going through a time of vast transformation. Alongside Elon Musk’s more prominent involvement in politics and the additional competition it is coming up against in the EV market, the company is bringing in the current model of the Model Y – its top-selling car – before introducing the new update.”

Competitor EV Manufacturers Lead the Pack

As Tesla falters, its rivals are gaining ground. Volkswagen’s battery electric vehicle sales jumped by 180% last February, with almost 20,000 units sold. BMW and Mini registered a combined 19,000 EV sales, while China’s BYD registered a 94% jump, with sales totaling more than 4,000 cars in Europe.

BYD has become Tesla’s largest international rival, beating the US automaker in revenue for the first time since 2018. The Chinese business posted a 29% year-over-year revenue gain to $100 billion, while Tesla had revenue of $97.7 billion.

Tesla’s Market Position Under Pressure

Even with the sudden dip in sales and share prices falling by over a third during 2025, Tesla continues to be the EV leader with a market valuation of $780 billion. Nonetheless, increased competition from established players and surging Chinese players can potentially dethrone it over the next few years.

In the meantime, total car sales in the 25 European markets declined by 3% in February, although battery electric vehicle registrations rose by 25%, marking strong consumer demand for EVs—just not perhaps so much for Tesla’s vehicles.