Europe delivered a dramatic blow to Tesla in April. The latest data from the European Automobile Manufacturers' Association reveals "European consumers are returning to EVs while shunning Teslas," per the Wall Street Journal. EV sales in Europe climbed more than 25% in April, but Tesla sold only 7,261 vehicles—half as many as in April 2024. This is the fourth straight month that Tesla's European sales have fallen, per Reuters. None of Tesla's rivals "have seen as great a drop in sales," and several are seeing sales grow, per Business Insider. But in the January-April period, Tesla sales are down nearly 40% year-on-year, per CNBC. Tesla was the 11th most popular EV brand in April, falling behind Chinese rival BYD for the first time.
The new version of Tesla's Model Y "has so far failed to turn things around," per Insider. Tesla is facing heavy competition from traditional automakers and Chinese players offering hybrid electric vehicles, which account for over 35% of the European car market, per CNBC. But it's also suffering as a result of CEO Elon Musk's image, his support of the German far-right party AfD, and his role within the Trump administration. As the Journal notes, Trump's "America First" agenda "is broadly unpopular in Europe" and "some consumers appear to be boycotting Tesla for political reasons." Musk has said he will cut back on his work with the Department of Government Efficiency by the end of this month, though he still plans to spend a "day or two per week" on government work, per CNBC. (More Tesla stories.)
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