We don’t typically report on monthly sales data for one car company in one market, but this one seems particularly notable given all that’s going on in the world. In another sign that Elon Musk’s company is in a real tough spot, Tesla is getting absolutely demolished in Europe. The company’s sales in the EU, UK, and European Free Trade Association fell a staggering 49 percent in April year over year, even as overall battery-electric vehicle sales rose.
The new figures from the European Automobiles Manufacturers Association revealed that Tesla only logged 7,261 new vehicle registrations in April, nearly half of what it recorded in April 2024. The numbers are particularly notable considering Tesla recently launched the refreshed Model Y, an update on the global best-seller which was expected to attract a host of new customers. Instead, it appears the strategy has so far been a failure.
Despite Musk’s optimistic talk about the Model Y’s sales prospects, Tesla’s brand crisis appears to be deepening. And it’s not because European consumers are souring on electric vehicles; in the first four months of 2025, new battery-electric car sales grew by 26.4 percent, to 558,262 units, capturing 15.3 percent of the total EU market share.
Despite Musk’s optimistic talk about the Model Y’s sales prospects, Tesla’s brand crisis appears to be deepening.
Tesla’s falling fortunes can be chalked up to several factors, including rising competition from domestic manufacturers and Chinese rivals, and Musk’s efforts to slash federal spending for the Trump administration as part of DOGE, or the Department of Government Efficiency. Musk’s political meddling in the EU, where he came out in support of Germany’s far-right party ahead of that country’s elections, appears to have done Tesla few favors as well.
Musk seems to be aware that his political activities are having an adverse effect on Tesla. He recently claimed he would spend less time in Washington and focus more on his company — although he also said he would stay involved in Trump’s White House through the end of the president’s term in office.
But while Republicans were once thrilled by Musk’s allegiance to Trump, the country as a whole is sick of his antics. A recent Reuters/Ipsos poll found that 58 percent of respondents had an unfavorable view of Musk, compared to 39 percent who viewed him favorably. And it would seem like the strategy of tying Musk closely to his companies’ brands has backfired. A survey gauging the reputations of top companies ranked Tesla 95th and SpaceX 86th, down from the 8th highest rated brand and 5th highest four years ago, respectively.
During last month’s quarterly earnings call, Musk confidently told investors that Tesla’s sales would pick back up after factory closures for the refreshed Model Y was all settled. But with the CEO so focused on AI, robotics, and self-driving cars, it’s not clear that there’s any immediate fix to Tesla’s compounding problems.