Tesla is losing Europe: sales are down and the brand’s image is crumbling

Sales of Tesla cars in key European countries continue to decline, hitting a record low in March. Analysts see the reasons not only in increased competition from Chinese manufacturers, but also in the political activities of the company’s CEO Elon Musk, Reutersreports.

Sales decline in key markets

According to analytical agencies, in March 2025, Tesla’s sales in some European countries decreased as follows:

  • France – 3,157 vehicles (-36.8% compared to March 2024);
  • Sweden – 911 vehicles (-63.9%);
  • Norway – 2,211 vehicles (-1%);
  • Denmark – 593 vehicles (-65.6%);
  • The Netherlands – 1,536 vehicles (-61%).

Overall quarterly figures also show a negative trend, with sales in France down 41.1% and in Denmark and Sweden by 55.3%. At the same time, the Spanish and Portuguese markets proved to be more resilient, with growth of 34.3% and 2.1% respectively in March.

Is Musk’s politics a problem for the brand?

Analysts note that, in addition to purely market factors, Elon Musk’s political views are also contributing to Tesla’s decline in popularity. His open flirtation with right-wing radical parties in Europe, in particular Germany’s AfD, has caused outrage among many Europeans.

“Nothing has ever destroyed the image of a car brand as quickly as Tesla,” said Quentin Wilson, founder of FairCharge.

The situation is exacerbated by acts of protest: in Berlin, Rome and Stockholm, activists attacked Tesla showrooms. In the Italian capital, a fire destroyed 17 of the company’s vehicles. Musk himself called it a “terrorist act”.

Competition with China and an outdated model range

In addition to political factors, Tesla is losing the European market to Chinese manufacturers. In particular, BYD is rapidly increasing sales by offering modern electric cars at a lower price.

Experts also draw attention to Tesla’s outdated models, which have not been updated for a long time. While competitors are launching new models with modern technologies, Tesla is delaying the release of new cars, and its new Model Y may not meet the expectations of the European market.

Will Tesla be able to restore trust?

Analysts predict that without an urgent update of the model range, price cuts and Elon Musk’s clear refusal to make political statements, Tesla risks losing a significant part of the European market. Meanwhile, competitors are not standing still – Chinese and European brands are only strengthening their positions, taking advantage of the US giant’s image crisis.