Tesla's European Sales Slide Further As Chinese Rivals Gain Ground

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(RTTNews) - Tesla's sales in Europe declined sharply in May, falling 27.9 percent year-over-year, even as demand for fully electric vehicles across the region rose by 27.2 percent.

According to data from the European Automobile Manufacturers Association, Tesla registered just 13,863 new vehicles across the European Union, the UK, and the European Free Trade Association, marking the brand's fifth consecutive monthly decline. Its regional market share slipped to 1.2 percent, down from 1.8 percent a year earlier.

The downturn comes as competition intensifies, particularly from Chinese EV makers, who continue to gain traction in Europe despite newly imposed EU tariffs.

Chinese brands sold 65,808 vehicles in May and doubled their market share to 5.9 percent, according to JATO Dynamics. Analysts attribute this growth to their aggressive push into alternative powertrains such as plug-in hybrids and full hybrids, which are increasingly popular among European buyers.

Tesla's revised Model Y, introduced to revitalize its ageing lineup, has yet to reverse the brand's fortunes. While the SUV has performed well in specific markets like Norway, it has not delivered a broader European rebound.

Analysts point to several factors behind Tesla's struggles, including pricing pressure from more affordable Chinese models and growing public backlash linked to CEO Elon Musk's political affiliations and public statements.

Overall car sales in Europe rose by 1.9 percent in May, led by strong gains in plug-in hybrids and alternative-fuel vehicles. Yet Tesla's continued slide stands in contrast to the broader EV market's momentum.

With legacy automakers and Chinese competitors expanding aggressively, Tesla faces mounting pressure to defend its position in an increasingly crowded and price-sensitive European market.