
Tesla's European Market Challenges Amidst EV Surge
- by Devdiscourse
- Jun 25, 2025
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| Updated: 25-06-2025 09:32 IST | Created: 25-06-2025 09:32 IST
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Tesla's new car sales in Europe dropped by 27.9% in May compared to the previous year, despite an overall increase in fully-electric vehicle sales by 27.2% across the region. The decline is notable as the company's revised Model Y is yet to positively impact its market trajectory.
Overall vehicle sales in Europe witnessed a modest rise of 1.9%, driven primarily by the increasing popularity of plug-in hybrids and alternative fuel vehicles, according to data published by the European Automobile Manufacturers Association (ACEA). However, Tesla finds itself grappling with waning consumer interest, attributed partly to the availability of more affordable Chinese electric vehicles and the CEO Elon Musk's controversial politics.
Data indicate that May's new car registrations across the European Union, Britain, and the European Free Trade Association reached 1.11 million, which marks an improvement from April's slight decline. Despite this, Tesla's European market share fell to 1.2% from last year's 1.8%, reflecting the ongoing pressures from traditional and emerging competitors in the rapidly evolving EV sector.
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