Volkswagen and BMW surpass Tesla in Europe EV sales
Tesla market share in Europe falls to five-year low
Tesla (TSLA) saw its European sales fall sharply in February, lagging behind legacy automakers Volkswagen and BMW Group, as well as rising Chinese rivals.
The company’s battery-electric vehicle (BEV) registrations in 25 European Union markets, the UK, Norway, and Switzerland dropped by 44% year-over-year, with fewer than 16,000 units sold. Tesla’s market share in February fell to 9.6%, its lowest in five years, reports Reuters.
Meanwhile, competitors saw significant gains. Volkswagen’s BEV sales surged 180% to nearly 20,000 cars, while BMW and Mini sold about 19,000 units combined. Chinese brands also surpassed Tesla’s sales figures in these regions.
Political and Market Pressures Impact Tesla
Industry analysts attribute Tesla’s struggles to several factors, including increased competition, the phase-out of the current Model Y, and CEO Elon Musk’s political stance. Musk’s recent endorsement of far-right parties in Europe, including Germany’s Alternative für Deutschland, may have hurt consumer perception, particularly in politically sensitive markets.
"Brands like Tesla, which have a relatively limited model lineup, are particularly vulnerable to registration declines when undertaking a model changeover," said Felipe Munoz, a global analyst at JATO Dynamics.
Chinese automakers capitalized on Tesla’s struggles, with BYD increasing sales by 94% to over 4,000 units, while Polestar saw an 84% rise, selling more than 2,000 BEVs.
Broader Market Trends and Future Outlook
While total car sales in the region declined by 3% to 0.97 million units, BEV registrations grew by 25%, signaling a shift in consumer preferences.
Tesla’s challenges in Europe highlight the growing dominance of traditional automakers and Chinese brands in the EV sector. Moving forward, Tesla’s ability to navigate political risks, expand its model lineup, and respond to rising competition will determine its future in the European market.
As we wrote, retail traders have poured a remarkable $8.1 billion into Tesla stock over 13 consecutive trading days, marking the largest retail buying streak by dollar amount in over a decade.
