Tesla has faced a sharp decline in its European sales, with registrations plummeting by 45% in January compared to the same month last year. Despite the overall growth of the European electric vehicle (EV) market, which rose by 37%, Tesla’s performance has significantly lagged behind, with only 9,945 units sold, down from 18,161 in January 2024.
Germany, a key market for Tesla, experienced a particularly challenging period, registering just 1,277 new cars in January, the lowest since July 2021. Tesla also saw a 63% drop in sales in France, marking its worst result there since August 2022. The UK, which saw a 42% rise in overall EV sales, also witnessed an 8% decrease in Tesla’s sales, with Chinese automaker BYD surpassing Tesla for the first time.
The increasing competition in Europe is partly driven by stricter government regulations, pressuring legacy automakers like Volkswagen, Stellantis, and Renault to ramp up their EV offerings. As these companies face tighter carbon emission targets and higher zero-emission quotas, Tesla’s market dominance in the region is being threatened.
CEO Elon Musk has expressed interest in re-entering the Indian market, fueling speculation about Tesla’s potential expansion into India. The company has already posted job openings in Mumbai and New Delhi, and rumors suggest that a partnership with Tata Motors might be in the works to facilitate Tesla’s return to India.
This downturn in European sales comes at a time when the EV market is experiencing rapid growth, signaling that Tesla’s hold on the European market may be under increasing pressure from both local and international competitors.
