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    Finance

    Tesla Misses Out on European Ev Growth as Model Y Fails to Revive Sales

    Published by Global Banking & Finance Review®

    Posted on May 27, 2025

    2 min read

    Last updated: January 23, 2026

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    Tags:innovationsustainabilityfinancial marketsEuropean economiesinvestment

    Quick Summary

    Tesla's European sales fell 49% in April despite a 27.8% rise in EV sales, as the Model Y fails to gain traction amid rising competition.

    Tesla misses out on European EV growth as Model Y fails to revive sales

    By Jesus Calero

    (Reuters) -Tesla's sales in Europe fell 49% in April from a year earlier, even though battery-electric car sales rose 27.8%, as the U.S. EV maker's upgrade of its Model Y shows little sign of reviving the brand's fortunes in the region.

    Overall car sales in Europe dipped 0.3%, with the strongest growth coming from electric and plug-in hybrid cars, data from the European Automobile Manufacturers Association (ACEA) showed.

    WHY IT'S IMPORTANT

    Tesla's European sales fell for the fourth straight month, as a backlash against CEO Elon Musk's political views combined with a tepid reception for the new Model Y and heightened competition from European and Chinese players.

    Tesla's European market share dropped to just 0.7% from 1.3% a year ago.

    European carmakers are striving to cut costs amid stiff competition, U.S. tariffs on auto imports, and a slowing global economy, with the outlook uncertain despite eased U.S.-China trade tensions.

    BY THE NUMBERS

    April sales in the European Union, Britain and the European Free Trade Association fell to 1.07 million cars, following 2.8% growth in March, the ACEA data showed.

    Registrations at Chinese state-owned SAIC Motor and Japan's Mitsubishi rose 24.5% and 22.1% respectively, while they fell 24.5% at Japan's Mazda.

    In the EU alone - not including Britain and the EFTA - total car sales have fallen 1.2% so far this year.

    That is despite continued growth in demand for EVs, with registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid-electric (HEV) cars rising 26.4%, 7.8% and 20.8% respectively.

    EV sales in the bloc - whether BEV, HEV or PHEV - accounted for 59.2% of passenger car registrations in April, up from 47.7% in the previous year.

    Among the largest EU markets, total car sales in Spain and Italy increased by 7.1% and 2.7% respectively, while in France and Germany they dropped by 5.6% and 0.2%.

    In Britain, registrations were down 10.4%.

    (Reporting by Jesus Calero and Amir Orusov in Gdansk and Victoria Waldersee in Berlin. Editing by Alison Williams and Mark Potter)

    Key Takeaways

    • •Tesla's sales in Europe fell 49% in April.
    • •Model Y failed to boost Tesla's market share.
    • •European EV sales rose 27.8% overall.
    • •Tesla's market share dropped to 0.7%.
    • •Increased competition from European and Chinese automakers.

    Frequently Asked Questions about Tesla misses out on European EV growth as Model Y fails to revive sales

    1What was the percentage drop in Tesla's sales in Europe?

    Tesla's sales in Europe fell 49% in April from a year earlier.

    2How did the overall car sales in Europe perform?

    Overall car sales in Europe dipped 0.3%, with the strongest growth coming from electric and plug-in hybrid cars.

    3What factors contributed to Tesla's declining sales?

    Tesla's sales fell due to a backlash against CEO Elon Musk's political views, a tepid reception for the new Model Y, and increased competition from European automakers.

    4What was Tesla's market share in Europe compared to last year?

    Tesla's European market share dropped to just 0.7% from 1.3% a year ago.

    5What percentage of passenger car registrations in April were EVs?

    EV sales in the bloc accounted for 59.2% of passenger car registrations in April, up from 47.7% in the previous year.

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