Tesla’s new car sales in Europe have declined for the fifth month in a row, as customers increasingly opt for more affordable Chinese electric vehicles, according to data from the European Automobile Manufacturers Association (ACEA). Elon Musk’s EV giant suffered a 27.9 percent drop in May on a year-over-year basis.
CNBC reports that Elon Musk’s Tesla has experienced a significant drop in new car sales across the European Union and the UK with figures falling to 13,863 units in May 2025, marking a 27.9 percent year-over-year decline. This downward trend has been persistent over the past five months, as revealed by data published by the ACEA on Wednesday.
Tesla’s market share in Europe has also taken a hit, dropping from 1.8 percent in May 2024 to 1.2 percent in May 2025. The company’s recent struggles can be attributed, in part, to the brand and reputational damage it has suffered due to CEO Elon Musk’s political activity in Europe, where he actively supports sovereigntist parties like Germany’s AfD — upsetting his core leftist customers.
Despite Musk’s departure from the Trump administration amidst a bitter online feud with the U.S. president, Tesla continues to face increasing competition from both traditional automakers and Chinese players in the electric vehicle market. Chinese automaker BYD, for example, registered nearly as many vehicles throughout Europe as Tesla in May after outselling the U.S. company for the first time in April.
Tesla had hoped that its revamped Model Y compact sport utility vehicle would help turn the tide and deliver a turnaround in the firm’s fortunes. The SUV was recently found to have played a crucial role in driving a rebound in new car sales in Norway. However, the overall European market remains a challenge for the company, as reflected in its declining sales figures and market share.
The rise of Chinese manufacturers in Europe’s new car market has been particularly noteworthy, despite the European Union’s tariffs on Beijing’s EVs. In May, Chinese automakers sold 65,808 units and more than doubled their market share in the region to 5.9 percent, according to data from JATO Dynamics. Felipe Munoz, global analyst at JATO Dynamics, attributed this growth to Chinese car brands’ decision to push alternative powertrains, such as plug-in hybrids and full hybrids, in the European market.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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