Tesla’s sales in Europe fell in February, marking the second consecutive month of decline, as the electric vehicle manufacturer missed the rise in the continental electric vehicle market following Elon Musk’s interventions in regional politics. Musk’s company sold 16,888 vehicles in Europe in February, a drop of more than 40 percent compared to 28,182 sold in the same month of 2024, according to the European Automobile Manufacturers Association, as reported by the Financial Times.
While Tesla is declining, the electric vehicle market is growing. There has been a 26 percent increase in electric vehicle sales compared to the previous year. The figures cover the EU, UK, Iceland, Liechtenstein, Norway, and Switzerland. Tesla’s share of the European market fell to 1.8 percent in February, down from 2.8 percent a year earlier.
Tesla’s shrinking market share followed Musk’s foray into European politics, where he supported the Alternative for Germany (AfD) party ahead of elections in the country. Analysts also believe that Tesla’s sales decline is due to an outdated product portfolio, as consumers await the upgraded Model Y to be unveiled this year. The company is also facing increasing competition from BYD and other Chinese rivals, who surpassed Tesla in European electric vehicle sales in February, according to Jato Dynamics.
– In addition to Elon Musk’s increasingly active role in politics and the heightened competition he faces in the electric vehicle market, the brand is gradually phasing out the existing version of the Model Y, its best-selling vehicle – said Felipe Munoz, global analyst at Jato Dynamics.
