Tesla, once a dominant force in the electric vehicle (EV) industry, is now struggling with a sales decline across major global markets. According to Reuters recent data reveals that Tesla’s sales have taken a sharp hit in both Europe and beyond, raising concerns about the company’s growth.
According to recent reports, Tesla’s sales have dropped dramatically in several European countries. In February, sales fell by 10% in Spain, 42% in Sweden, 45% in France, 48% in Norway and Denmark, 53% in Portugal, and 55% in Italy. The most severe drop was seen in Germany, where sales plummeted by a staggering 76% compared to the previous year.
Germany, the largest EV market in Europe, recorded less than 1,500 new Tesla registrations in February. This is a massive 70.6% drop from the same period last year. Interestingly, this decline happened despite Germany seeing a 30.8% rise in overall electric vehicle sales during the same time.
Tesla’s struggles are not limited to Europe. As Carscoops reported, in Australia, the company’s sales dropped 66% in February, with only 1,592 vehicles sold compared to 5,665 during the same period last year.
The Electric Vehicle Council’s data shows that Tesla delivered just 2,331 vehicles in the first two months of 2025, marking a 65.5% decrease from the 6,772 vehicles sold during the same period in 2024.
China has also reported disappointing figures. Tesla’s shipments from its Shanghai factory fell by 49% in February, with only 30,688 vehicles delivered — the lowest monthly figure since July 2022. Meanwhile, Chinese automaker BYD and Xiaomi continues to dominate the EV market, selling over 318,000 electric and hybrid vehicles last month, a 161% increase from the previous year.
While Tesla has not officially commented on the reason for the sudden drop in sales, industry experts have pointed to a few potential causes. Some believe that Tesla’s lineup of vehicles may be losing its appeal due to a lack of fresh updates, with customers possibly holding off on purchases as they wait for new models.
Another reason could be linked to Tesla CEO Elon Musk’s recent political controversies. Musk’s public support for Germany’s far-right party, the AfD, has reportedly damaged Tesla’s reputation in the country. His involvement with former U.S. President Donald Trump has sparked backlash, leading to boycotts from certain groups.
Despite the troubling numbers, Tesla is not giving up. The company recently began deliveries of the Model Y Juniper, a revised version of its best-selling EV. According to a report from Cox Automotive in 2024, the Model Y was the top-selling electric vehicle in the United States, with around 373,000 units sold.
Experts believe that some customers might be waiting for feedback on the new Model Y before making a purchase, which could explain the drop in sales. If the revised Model Y receives positive reviews and strong demand, Tesla could see a rebound in sales later in 2025.
Tesla is also offering incentives to attract buyers. For those interested in the Cybertruck, Tesla is offering lifetime Supercharger access for as long as the owner keeps the vehicle. Additionally, customers looking to purchase the Model 3 can benefit from a $7,500 federal tax credit in the U.S., along with a low-interest 0.99% loan for those with strong credit scores.
Tesla’s goal of selling 20 million electric vehicles annually by 2030 now seems out of reach, especially after the company experienced its first annual sales decline in a decade. The pressure is on for Tesla to regain customer trust and strengthen its position in market.
