Persistent Drop: Tesla's EU Car Market Share Remains in Free Fall
European Car Market Q1 2025: Tesla Experiences 45% Drop in Registrations amidst Increasing Demand for Electric Vehicles
In the first quarter of 2025, US automaker Tesla contended with a steep decline in the European car market, as per the European automakers' association ACEA. The registration of Tesla vehicles across the EU, Norway, Switzerland, Liechtenstein, Iceland, and the UK decreased by a significant 45% compared to the same period last year. This downturn follows a more pronounced dip at the beginning of the year when registrations dropped by 49% between January and February compared to the corresponding months in 2024.
The overall registration of new cars in the EU during Q1 2025 displays a modest decline of 1.9%, but the pure electric car segment exhibited healthy growth, with a 23.9% increase. Electric vehicles accounted for 15.2% of the total market share, showcasing the appeal of this eco-friendly transportation option.
Despite the expansion in the electric car market, Tesla notably underperformed, with its market share dropping substantially from 18.2% in 2023 to 9.4% in Q1 2025. This marked a clear shift in the competitive landscape of the electric vehicle sector. The introduction of the new Model Y did not seem to offset the decline observed in Tesla's EU market presence, which weakened both in absolute numbers (decreasing 37% year-over-year) and relative to the broader industry.
The European market continues to demonstrate robust growth in electric vehicle registrations, highlighting the demand for eco-friendly transportation solutions. As the industry moves forward, it will be interesting to observe how Tesla responds to this shifting market landscape and whether it can regain its leading position in the electric vehicle sector within the EU.
The shift in the European market towards eco-friendly transportation solutions has also affected the electric vehicle sector in sports, with Tesla facing a substantial drop in its market share. The declining demand for Tesla's electric vehicles in sports-related applications raises questions about the company's ability to reclaim its standing in the electric sports car segment.
