Elon Musk’s Political Ties and EV Competition Weigh Down Tesla’s EU Momentum

Tesla is facing a steep decline in European sales, even as the continent embraces electric vehicles at record rates.

Sales fell sharply in April across multiple European markets, with the UK, Netherlands, Denmark, Portugal, Sweden, and France all reporting double-digit drops. According to national automotive trade groups, Tesla’s sales dropped 62% in the UK, 67% in Denmark, 74% in the Netherlands, 33% in Portugal, 81% in Sweden, and 59% in France.

This comes at a time when EV demand in the region is rising. In the UK alone, EV sales climbed 8% in April—while Tesla’s sales plummeted.

Musk’s Politics and Chinese Competition Fuel the Decline

Analysts attribute the fall to several overlapping issues. Musk’s political stance, including support for far-right figures in Germany and the UK, has drawn criticism across Europe. This backlash has intensified following his visible involvement in the Trump administration.

Tensions over potential U.S. tariffs on European imports have also soured public sentiment. Many buyers are now turning to alternative EV brands, especially as Chinese automaker BYD gains ground. Industry watchers expect BYD to overtake Tesla as the global EV leader by year-end.

Tesla does not release regional sales figures and declined to comment on the April numbers.

Dark Outlook for 2025 Amidst Plunging Revenue

The first quarter of 2025 already marked Tesla’s worst global performance on record. Sales dropped sharply, resulting in a staggering 71% fall in net income.

Tesla had to rely on selling regulatory credits to stay in the black. According to the European Automobile Manufacturers’ Association, Tesla’s EU sales dropped 36% in Q1 2025, even as the region’s overall EV market grew by 24%.

Analyst Gordon Johnson from GLJ Research stated, “The second quarter is shaping up to be a disaster, just like Q1.”

Unless Tesla turns around consumer perception and addresses its growing list of challenges, 2025 could further erode its dominance in the EV space.