Tesla’s Sales Drop Over 50% in Europe as Chinese Brands Gain Traction

In April, Tesla’s car sales in the European Union plummeted by over 50%, as Chinese electric and hybrid car manufacturers gained traction in a rapidly evolving market. According to industry data released on Tuesday, sales of Tesla vehicles, produced by Elon Musk’s company, dropped by 52.6% compared to the same month last year, with only 5,475 cars sold.

Despite a general rise in electric vehicle sales across the 27 EU nations, Tesla’s market share significantly declined, attributed to Musk’s engagement with former US President Donald Trump and the aging lineup of Tesla models. The European Automobile Manufacturers’ Association (ACEA) reported that, for the first four months of 2025, Tesla’s sales fell 46.1% year-on-year, totaling 41,677 vehicles.

Once the leader in electric vehicle sales, Tesla was surpassed in April by 10 competitors, including Volkswagen, BMW, Renault, and the Chinese manufacturer BYD, as noted by JATO Dynamics consultants. Additionally, Tesla revealed a 13% decline in global sales for the first quarter, increasing pressure on Musk, who cited production losses due to upgrades on the Model Y.

In a recent announcement, Musk stated his intention to reduce involvement in efforts to decrease US government spending and maintained that Tesla’s sales were “doing well.”

Hybrid Vehicle Market Trends

In the electric vehicle segment, Skoda’s new Elroq led sales, while Tesla’s once-popular Model Y fell to ninth place. Overall, electric car sales in April rose by 26.4% year-on-year, capturing a 15.3% market share, according to ACEA. However, this growth was uneven across Europe, with varying government incentives influencing electric vehicle adoption. Countries like Germany, Belgium, Italy, and Spain experienced significant increases, whereas sales in France saw a decline.

Sigrid de Vries, ACEA’s director general, noted, “The share of battery-electric vehicles is gradually gaining momentum, but growth remains incremental and inconsistent across EU nations.” She emphasized the importance of ongoing government support through purchase incentives, recharging infrastructure, and favorable electricity pricing to make battery-electric vehicles a mainstream choice.

The sustained popularity of hybrid vehicles reflects the value of a technology-neutral approach, with hybrid sales rising by 20.8% since the beginning of the year, while petrol-only car sales decreased by 20.6%.

Volkswagen remains the leading brand in Europe, achieving a 2.9% sales increase in April. Chinese brands have also emerged as key players in the electric and hybrid markets, capturing 7.9% of the European market. Brands such as BYD, MG, Xpeng, and Leapmotor experienced a 59% sales increase in electric and hybrid vehicles, while other manufacturers saw a 26% rise.

JATO expert Felipe Munoz remarked on the uncertain future regarding potential tariffs the European Union may impose on Chinese hybrid cars, similar to those already applied to electric vehicles.