Tesla registrations drop 47% in European Union, Volkswagen and BMW take lead

Tesla’s electric car sales in Europe dropped sharply by 49% in January and February compared to last year, falling to 19,046 registrations, the ACEA manufacturers’ association reported on Tuesday.

In February alone, registrations decreased by 47% to 11,743, leaving Tesla with just a 1.1% share of the European Union market.

Data from JATO Dynamics, released on Monday, showed Tesla’s battery-electric vehicle sales across 25 EU countries, the UK, Norway, and Switzerland fell 44% in February to under 16,000, with its market share dipping to 9.6%—the lowest for that month in five years.

Meanwhile, competitors outperformed Tesla. Volkswagen’s BEV sales surged 180% to nearly 20,000 in February, and the BMW Group, including Mini, sold close to 19,000 electric vehicles.

Chinese brands together sold more than Tesla, with BYD up 94% to over 4,000 cars and Polestar up 84% to over 2,000. Xpeng recorded over 1,000 sales, and Leapmotor neared 900, though Volvo (owned by Geely) and MG (owned by SAIC) saw drops of 30% and 67%.

Despite Tesla’s decline, overall EU electric vehicle sales grew 28.4% to 255,489 in the first two months, holding a 15.2% market share. In the broader 25-market region, BEV registrations rose 25% in February, even as total car sales fell 3% to 0.97 million.

Several issues are hitting Tesla’s sales. Older models, like the Model Y being phased out, are a factor. Felipe Munoz from JATO Dynamics said, “Companies like Tesla, with fewer models, struggle with sales drops during a model switch.”

At the same time, some customers might be turning away because of Tesla owner Elon Musk’s actions. Musk, who supports US President Donald Trump, has taken a role leading the new Department of Government Efficiency (DOGE) and pushed cost-cutting plans.

He has also backed far-right groups in Europe, such as Germany’s Alternative für Deutschland, with over two dozen posts on his X platform. This has raised questions about customer loyalty. In the US, Tesla dealerships have been attacked recently, and the company’s stock price has declined over the past month.

ACEA’s Sigrid de Vries said, “The latest figures show demand for electric vehicles isn’t high enough to move faster toward zero-emission goals.” She called for tax breaks, buyer incentives, and more charging stations, as the EU plans to relax emission rules for struggling carmakers.

Hybrid-electric vehicles led sales in the first two months with 594,059 registrations and a 35.2% share, ahead of petrol at 29.1% and diesel at 9.7% in February.

(With input form agencies)

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