Tesla sales in Germany, Europe’s largest car market, plummeted by 36.2% in May, marking the fifth consecutive month of decline, according to data released by the German Federal Motor Transport Authority (KBA). The agency reported that Tesla registered just 1,210 new vehicles last month, down from the same period a year ago. Despite Tesla’s struggles, the overall market for battery electric vehicles (EVs) in Germany surged by 44.9%, driven by strong demand for competitors, notably Chinese automaker BYD.The decline in Tesla’s sales extends beyond Germany, with significant drops across other European markets. In France, Tesla’s registrations fell by a staggering 67%, while Spain saw a 29% decrease. In Sweden, Tesla’s sales dropped 53%, with Volkswagen’s new electric model, the ID.7, outselling Tesla’s revamped Model Y by nearly two to one. Norway was a notable exception, where Tesla sold 2,600 vehicles—more than triple the previous year’s figures—boosted by strong deliveries of the updated Model Y.
Chinese EVs are hurting Tesla
Meanwhile, Chinese EV giant BYD has been gaining ground in Europe. In Germany, BYD’s sales soared ninefold to 1,857 units in May, making it the top-performing Chinese EV brand in the market. This growth comes despite the European Union imposing 17% tariffs on Chinese EVs in 2024. Across Europe, the appetite for electric vehicles remains robust, with Spain reporting a 72% increase in overall EV sales, even as Tesla’s figures slid by 19%.Analysts attribute Tesla’s declining sales to a combination of factors, including growing competition from Chinese manufacturers and controversy surrounding CEO Elon Musk’s political activities, which have sparked protests among some European consumers. As the EV market continues to expand, Tesla faces mounting pressure to regain its footing in key markets.
