European car sales have dropped this year, with Tesla’s market share tumbling as buyers turn to other electric vehicle makers.
New sales data just released show that Tesla’s market share in the EU, the UK and the EFTA zone (Iceland, Liechtenstein, Norway and Switzerland) has shrunk to 1.8% so far this year, down from 2.8% in January and February 2024.
In the first two months of this year, Tesla has sold 26,619 vehicles in the EU + EFTA + UK region, down from 46,343 a year ago. That’s a fall of over 42%, data from the European Automobile Manufacturers Association (ACEA) shows.
The scale of the slide will reinforce speculation that Elon Musk’s role at the Trump White House is hurting Tesla. Protests at the company’s showrooms have been rising in the US since Musk’s Department of Government Efficiency began slashing jobs across the federal government.
Pam Bondi, the US attorney general, has condemned vandalism and damage to Tesla dealerships and charging stations as “domestic terrorism”.
In Britain, groups such as “Tesla Takedown UK” and “Everybody Hates Elon” group have been coordinating protests against the company – with some supporters motivated, it appears, by Musk’s endorsements for far-right politicians.
Despite that, Tesla’s sales in the UK actually rose by a fifth last month.
But in the EU alone, Tesla’s sales have almost halved so far this year, down 49%, as the company misses out on a rise in sales of electric vehicles.
Analysts have suggested that Tesla’s relatively aging lineup as it updates the Model Y may be counting against it.
While Tesla hits a tough patch, Chinese rival BYD is powering ahead. Yesterday it reported its annual sales had exceeded $100bn for the first time in 2024, overtaking Tesla.
Across the first two months of 2025, new battery-electric car sales in the EU grew by 28.4%, to 255,489 units, capturing 15.2% of total market share. ACEA reports that there were “robust double-digit gains” in Germany (+41%), Belgium (+38%), and the Netherlands (+25%), although they dipped by 1.3% in France.
In contrast, sales of petrol sales in the EU + EFTA + UK are down 21.9%.
And across all car types, new EU car registrations declined by 3% in February compared to the same period in 2024.ACEA says: "Notably, the bloc’s major markets saw declines, with Italy (-6%), Germany (-4.6%), and France (-3.3%). Spain conversely recorded an 8.4% increase."
Elsewhere in the auto industry, Hyundai has unveiled plans to make a record $21bn investment in the US, to protect itself from the threat of tariffs from Donald Trump.
Hyundai plans to spend about $21bn in the US by 2028 to increase vehicle production, including a new $5.8bn Hyundai Steel plant in Louisiana that will produce more than 2.7m metric tons of steel annually.
Shares in Hyundai have rallied by 3.3% today, and were up 7.5% at one stage, as investors welcomed its US investment.Affiliate Kia Corp has gained 2%.
But Hyundai Steel’s share price has dropped – after an initial 5.4% jump, they have fallen almost 7%, as traders digest the plan to build a plant in Louisiana, creating 1,400 jobs.
The agenda
• 9am GMT: IFO survey of Germany’s economy in March
• 11am GMT: CBI’s distributive sales survey of UK retail
• 1pm GMT: S&P/Case-Shiller index of US home prices
• 2pm GMT: US home sales for February
• 2pm GMT: US consumer confidence report
We'll be tracking all the main events throughout the day … |
Was Heathrow’s response to fire at a substation really the best it could do? 
Rachel Reeves is all about growth. So why won’t she admit that Brexit is its worst enemy? 
