In a surprising twist, Tesla is experiencing a major sales slump across Europe even as electric vehicle (EV) sales from other brands are booming. According to Reuters, Tesla’s new car sales in Spain fell 36% in April, with only 571 vehicles sold compared to the same month last year. What makes this drop more noticeable is that other EV brands saw an increase in sales during the same time in Spain.

This poor performance isn’t limited to Spain. Across Europe, Tesla’s sales plunged by 37.2% during the first four months of the year, while the overall electric vehicle market grew by 28%. Some countries saw even sharper declines in Sweden, Tesla’s sales dropped 81%, reaching their lowest point in nearly three years.

Political Backlash and Rising Competition

Experts say that Tesla’s declining popularity in Europe might be tied to CEO Elon Musk’s recent political stance, especially his alignment with right-wing politics and closeness to President Donald Trump. Many European consumers are now turning away from Tesla and choosing Chinese EVs, especially from Tesla’s rival, BYD.

Discounts Can’t Hide the Drop in U.S. Sales

The situation isn’t much better in the United States. Reports from Electrek show that Tesla’s sales have also dropped in the U.S., especially for the Model Y, which was expected to attract more buyers. To counter the soft demand. Tesla has started offering discounts on the new model, hoping to win back interest.

Exploring New Markets Amid Challenges

Tesla’s declining sales forced it to search for new markets, like Saudi Arabia and India. There’s a lot of problems in these countries, such as less charging infrastructure, which can delay Tesla’s growth there. 

Now that sales have dropped, Tesla is trying out new markets including Saudi Arabia and India. Issues like theirs, however, still hold great challenges for example charging infrastructure, which will be a deterrent to Tesla’s growth there.

  • EU Tariff Threats on Chinese EVs Could Indirectly Impact Tesla
  • There are presently talks about imposing levies on electric vehicles from China by the European Union in connection with the fair spin-off concerns.
  • Tesla manufactures some of its vehicles at its Gigafactory in Shanghai.
  • Such potential future trade frictions between EU and China may disrupt the cost and competitiveness of the company in Europe through Tesla. Though American, it still has an effect on Tesla regarding the tariffs in the European market as well.
  • This situation could add more pressure to Tesla’s already falling sales in the region.

Tesla’s European Gigafactory Faces Production Challenges

Tesla’s Gigafactory Berlin-Brandenburg, originally launched to cater to European markets, has faced operational delays and community protests since its inception. These have impeded local production and delivery timelines, making it all the more difficult for Tesla to meet demand or give greater local models-this is in stark contrast to its competitors, who have a stronger local presence.