• Tesla's sales fell by 27.9% in May compared to the previous year.
• Overall sales of battery-electric vehicles in Europe increased by 27.2%.
• The company’s market share dipped to 1.2% in May, down from 1.8% a year ago.
• Chinese EV manufacturers saw substantial sales growth, enhancing market competition.
• Elon Musk's political activities reportedly affect consumer preferences against Tesla.

Tesla experienced a 27.9% decline in its European sales in May compared to the same month last year, marking five consecutive months of sales decreases. Despite a rebound in the overall electric vehicle (EV) market, which saw sales jump by 27.2%, Tesla's revised Model Y has not yet revitalized the brand's standing in the region, according to Reuters and The Jakarta Post.

Data released by the European Automobile Manufacturers Association (ACEA) indicates Tesla sold only 13,863 units in Europe in May, down from 14,682 in May 2024 across the EU, EFTA, and the UK. The U.S. automaker's market share now stands at 1.1% to 1.2%, significantly lower from last year's 2%. In stark contrast, overall car sales in Europe rose by 1.9%, with sales of battery-electric vehicles accounting for 15.4% of total sales, according to India Times and AA.

The decrease in Tesla’s sales is attributed partially to political controversies surrounding CEO Elon Musk, which may have alienated potential customers. Reports suggest that consumers are increasingly opting for cheaper electric vehicles from Chinese manufacturers, which have seen a 111% rise in sales year-on-year, capturing a market share of 5.9% in Europe, as noted by AA and Reuters.

This sales downturn comes despite a general increase in demand for electric vehicles, where registrations of battery-electric (BEV), plug-in hybrid (PHEV), and hybrid-electric (HEV) cars saw considerable growth, highlighting the intensifying competition Tesla faces in the EV market, according to India Times, Reuters, and The Jakarta Post.