A Tesla car showroom stands doused in blue paint following vandalism by activists of the group New Generation on March 31, 2025 in Berlin, Germany.
Omer Messinger | Getty Images
European sales of Tesla vehicles plunged in April, as the U.S. electric car maker continues to face reputational damage regionally and rising competition.
Tesla sold 7,261 cars in Europe in April, down 49% year on year, according to the European Automobile Manufacturers’ Association, or ACEA. That drop came even as overall battery electric car sales rose 34.1% annually in April.
Tesla’s brand value and reputation have declined since 2024 due largely to CEO Elon Musk‘s incendiary rhetoric and political activities.
In Germany, Musk formally endorsed the far-right AfD party ahead of the country’s parliamentary election earlier this year. Tesla has also clashed with Scandinavian labor groups.
In the U.S., Musk spent nearly $300 million to re-elect U.S. President Donald Trump, and has led an initiative for the Trump administration to slash federal agencies. In response, protests erupted at Tesla dealerships across Europe.
Tesla sales tanked nearly 40% year on year over the January-April period.
The company launched an upgraded version of its Model Y sport utility vehicle this year, but its overall lineup of cars is still ageing, with no new mass-market offering unveiled to date.
At the same time, Tesla continues to battle rising competition from traditional automakers as well as aggressive Chinese players. Last week, separate data showed auto giant BYD sold more pure electric cars in Europe than Tesla for the first time.
European consumers are also showing a preference for hybrid electric vehicles — cars with a small battery that still mainly run on traditional fuel. Hybrid electric vehicles account for just over 35% of the total European car market, ACEA data showed.
Tesla does not have any hybrid electric cars on the market, only selling full battery-powered vehicles.
Investors have questioned Musk’s dedication to Tesla because of his time advising Trump and his role leading the so-called Department of Government Efficiency. Musk said on the most recent Tesla earnings call that his time spent running DOGE would drop significantly by the end of May, but that he plans to dedicate a “day or two per week” to government work.
The tech billionaire added in a recent public speech that he is committed to leading Tesla for the next five years.
— CNBC’s Ashley Capoot contributed to this report.
