Tesla Sales Plummet in europe Despite Overall EV Market Growth – Is Elon Musk to Blame?
New York, NY – June 26, 2025 – Tesla is facing a deepening crisis in the European market, with sales figures released today revealing a fifth consecutive month of decline in May. This downturn, a 28% drop across 30 European countries, comes despite a notable 25% increase in overall electric vehicle (EV) sales, raising serious questions about the company’s performance and the impact of CEO Elon Musk’s controversial public statements.
Investors reacted swiftly to the news, sending Tesla shares down over 4% in early afternoon trading.The slump follows Musk’s recent promise of a “major rebound,” a prediction that fueled a brief buying frenzy now demonstrably unfounded.
The company’s struggles aren’t tied to production issues. Retooling for the updated Model Y concluded months ago, yet sales haven’t recovered. Hope now rests on the anticipated release of a more affordable Tesla model later this year, but analysts remain cautious.
A particularly stark contrast emerges in Germany,where EV sales surged 45%. However, this growth hasn’t benefited Tesla, as Musk’s public support for the far-right Choice for Germany party has reportedly alienated potential buyers [[source article]].
Meanwhile,Chinese automaker SAIC Motor has overtaken Tesla as the leading car seller in the region,boasting a 38% increase in European sales.
Key Takeaways:
Sales Decline: Tesla sales in Europe fell 28% in May, marking a fifth consecutive month of decline. Market Disconnect: This decline occurs despite a 25% overall growth in the European EV market.
Musk Factor: Elon Musk’s controversial political endorsements are increasingly seen as a drag on Tesla’s sales, particularly in key markets like Germany.
Rising Competition: SAIC Motor has surpassed Tesla in European sales, signaling a shift in the competitive landscape.
What’s Next?
Investors will be closely watching for the launch of Tesla’s cheaper model and assessing whether it can reignite demand.However, the company must also address the reputational damage caused by Musk’s actions if it hopes to regain its footing in the crucial European market.
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