Tesla’s February Struggles in Europe as EV Sales Soar

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Tesla's market share in Europe continued to decline in February, as the company faced a second consecutive month of falling sales despite the overall increase in electric vehicle (EV) registrations across the continent. According to the European Automobile Manufacturers Association (ACEA), Tesla's sales in Europe dropped by 42.6% year-on-year, with the company selling significantly fewer cars compared to the same month in 2024.

Tesla's market share in the total European car market fell to 1.8% in February, down from 2.8% a year ago. The company's share of the battery-electric vehicle (BEV) market also dropped sharply from 21.6% last year to just 10.3% this year. In total, Tesla sold fewer than 17,000 cars in the European Union, the UK, and European Free Trade Association countries, compared to over 28,000 in February 2024.

The company faces increased competition, with both traditional automakers and new Chinese entrants launching new, often more affordable electric models. Additionally, Tesla's lineup remains relatively small and aging, and CEO Elon Musk's controversial associations with far-right parties in Europe have further harmed the brand's image.

While overall BEV sales in Europe surged 26.1% year-on-year in February, total car sales fell by 3.1%. Tesla also participated in a carbon credit pool to help other automakers meet the EU's new CO2 emission targets, but analysts suggest that Tesla's continued sales decline could affect its ability to support other brands' emissions reduction efforts.

Despite these challenges, the EU's efforts to promote EV adoption, including the introduction of CO2 targets and the relaxation of emission limits, have provided a boost to the electric car market in Europe. Volkswagen and Renault saw sales increases of 4% and 10.8%, respectively, while sales for Stellantis fell. Chinese automakers, including BYD and SAIC Motor, also gained market share in Europe, with BYD's presence expanding from 1.5% to 2.5%.

In February, Spain saw a strong 11% year-on-year increase in car sales, while major markets such as Germany, Italy, and France experienced declines.

Paraphrasing text from "Reuters" all rights reserved by the original author