Tesla faced a dramatic setback in its European sales in April 2025, with figures nearly halving compared to the same period last year. According to Reuters, the automaker's sales fell by 49%, reducing its market share in Europe from 1.3% to just 0.7%. This marks the fourth consecutive month of declining sales for Tesla in the region, highlighting continued challenges for the electric vehicle giant.

Adding to Tesla's woes, Chinese rival BYD overtook it in the European electric vehicle market for the first time. The Financial Times reported that BYD recorded sales of 7,231 fully electric cars, slightly surpassing Tesla's 7,165 sales. This shift underscores the competitive pressures Tesla is facing as new entrants and existing rivals intensify their push into the growing EV market.

Compounding these competitive pressures are political controversies surrounding Tesla's CEO, Elon Musk. As noted by Euronews, Musk's political actions abroad, including his support for far-right parties, have sparked backlash among European consumers, leading to protests and a negative impact on Tesla’s brand perception. Despite Tesla's decline, the European market is overall seeing a shift towards electric vehicles, with such cars making up 59.2% of EU passenger car registrations in April, even as overall car sales dipped slightly by 0.3%.