Tesla’s market share in Europe continued to shrink in February as its sales dropped for the second consecutive month, despite overall EV registrations increasing across the continent. According to the European Automobile Manufacturers Association (ACEA), Tesla has sold 42.6% fewer cars in Europe this year, with fewer than 17,000 units sold compared to over 28,000 in the same period last year.
Tesla’s total market share fell to 1.8%, while its battery-electric vehicle (BEV) market share declined from 21.6% last year to 10.3% in February 2025.
Challenges Facing Tesla in Europe
The decline comes as traditional automakers and new Chinese brands introduce more affordable EV options. Tesla’s relatively small and aging vehicle lineup poses a challenge ahead of the upcoming launch of the new Model Y mid-size SUV this month.
CEO Elon Musk has also attracted controversy by engaging with far-right parties in Europe, potentially impacting Tesla’s brand perception and contributing to its sales decline.
Broader EV Market Trends
Despite Tesla’s struggles, overall BEV sales in Europe rose 26.1% in February compared to last year, even as total car sales declined by 3.1%. Industry analysts attribute the rising interest in electric cars to new EU emission targets and the introduction of more budget-friendly models. However, this growth has not fully offset the declining demand for petrol and diesel vehicles.
“We continue to expect global auto volume essentially flat this year,” Citi analysts noted in a recent report. The coming months will reveal whether Tesla’s new Model Y can help regain momentum in the European market.