Tesla's sales in Europe have seen a staggering 49% drop in the first two months of 2025, as reported by the European Automobile Manufacturers Association (ACEA). The Al Jazeera highlights that this decline comes despite an overall growth in electric vehicle (EV) registrations across the continent, which surged by 28.4% during the same period.

Specifically, Tesla's new vehicle registrations plummeted to 19,046 from over 37,000 in the first two months of the previous year, resulting in a market share drop from 2.1% to just 1.1%. The decline coincides with increasing competition from newer and often cheaper models from both established automakers and emerging brands, particularly from China.

Analysts attribute part of this sales slump to Tesla's ageing model lineup and the controversial political activities of CEO Elon Musk. Musk's vocal support for far-right political parties in Europe, such as Germany's AfD, has reportedly alienated some consumers and led to growing boycotts against the brand. Incidents of vandalism at Tesla dealerships, linked to dissatisfaction among activist groups, have also raised concerns regarding consumer sentiment towards the company.

As a result, Tesla's market share fell to 1.8% of total car sales and 10.3% of the battery-electric vehicle market in February, down from 2.8% and 21.6%, respectively, just a year prior. This downfall is compounded by the broader automotive climate, with traditional brands like Volkswagen and Renault posting significant sales increases of 4.3% and 8.2% respectively, as highlighted by Business Insider.

Despite Tesla's efforts to address its consumers' needs and revamp its products, including updates to the Model 3 and the anticipation of the new Model Y, public perception continues to be swayed by external factors. Recent attempts to form a carbon credit pool with other automakers to comply with EU emissions targets further illustrate Tesla's struggle to maintain its competitive edge.

As the electric vehicle landscape evolves with increasing diversity in offerings, the future of Tesla in Europe remains uncertain. An analysis by Newsweek underscores the public's wavering confidence in the brand, especially with speculation about Musk's political affiliations potentially jeopardizing Tesla’s reputation in the marketplace.

For continued updates on Tesla and the electric vehicle market, visit industry news sites like Reuters.