Sales of new Tesla cars slumped in Europe last month in the latest indication of a potential buyer backlash over Elon Musk’s high profile and controversial behaviour since becoming a leading figure in Donald Trump’s administration.
The Texas-based electric carmaker sold less than 16,000 vehicles across Europe last month, down 44% on average across 25 countries in the EU, the UK, Norway and Switzerland, according to data compiled by the research platform Jato Dynamics.
Tesla’s market share fell to 9.6% last month, the lowest it has registered in February for five years. In January, its sales across Europe fell 45%, from 18,161 in 2024 to 9,945.
However, in the UK the Society of Motor Manufacturers and Traders reported an almost 21% rise in the number of new Tesla cars registered in February, with the Model 3 and Model Y proving the second and third most popular after the Mini Cooper.
Analysts and investors have been attempting to assess what impact Musk’s political interventions are having on the carmaker, where he is chief executive, amid signs that his senior role in Trump’s administration is leading to a consumer backlash by some Tesla owners or prospective buyers. Tesla dealerships have also been the target of protests.
The tech billionaire and close Trump adviser has shown support for Germany’s far-right AfD party, theatrically brandished a “chainsaw for bureaucracy” at a conservative conference, and accused Keir Starmer and other senior politicians of covering up the scandal about grooming gangs.
However, analysts have said that the volatile sales are also likely to have been affected by Tesla’s overhaul of the Model Y.
Felipe Muñoz, a global analyst at Jato Dynamics, said: “Tesla is experiencing a period of immense change. In addition to Elon Musk’s increasingly active role in politics and the increased competition it is facing within the EV market, the brand is phasing out the existing version of the Model Y – its bestselling vehicle – before it rolls out the update.
“Brands like Tesla, which have a relatively limited model lineup, are particularly vulnerable to registration declines when undertaking a model changeover.”
The research company’s figures for February show that Tesla’s rivals powered ahead in Europe last month.
Volkswagen reported a 180% increase in sales of battery electric vehicles to just under 20,000, while BMW and Mini sold a combined 19,000 such models last month.
The Chinese-owned BYD recorded a 94% increase in sales in Europe to more than 4,000. Separate figures show that BYD’s global sales topped $100bn (£83bn) last year, overtaking Tesla as the world’s biggest electric car company by revenue.
BYD, which last beat Tesla on global annual revenues in 2018, reported revenues of 777bn yuan (£86bn) in 2024, a 29% year-on-year increase, beating analyst estimates. Tesla reported annual revenues of $97.7bn last year.
BYD also sells about the same number of electric vehicles as Tesla – 1.76m compared with 1.79m respectively in 2024. However, when sales of BYD’s other hybrid cars are included it is much larger.
Polestar, which is primarily owned by Volvo’s parent company, Geely, recorded an 84% increase to more than 2,000 vehicles.
BYD sold 4.27m vehicles last year, almost as many as the 4.5m sold by Ford, and has forecast that it will sell between 5m and 6m this year. The Hong Kong-listed company has a market value of about $160bn, up about 50% so far this year. Tesla is valued at $780bn despite a share-price plunge of more than a third in 2025. Tesla shares opened up 6% on Monday as the wider Nasdaq index rose nearly 2%.
Total car sales in across the 25 EU markets, the UK, Norway and Switzerland dropped by 3% to 970,000 in February, while BEV registrations were up by a quarter.
• This article was amended on 25 March 2025. Elon Musk referred to a “chainsaw for bureaucracy”, not a “chainsaw of democracy” as an earlier version said.
