Ageing design, rising competition and controversy around Elon Musk seen driving reversal of Tesla sales.

Tesla’s European sales dropped 49 percent year on year in January and February, despite rising registrations of electric vehicles (EVs).

New Tesla registrations in the European Union fell to 19,046 in the first two months of the year from at least 37,000 in the same period of 2024, according to a report published by the European Automobile Manufacturers’ Association (ACEA) on Tuesday.

The lobby group noted that the United States-based EV manufacturer is struggling to keep pace with competitors while the political controversy around owner Elon Musk is also affecting sales.

Tesla’s struggles saw Tesla’s market share drop from 2.1 percent to 1.1 percent.

In February alone, Tesla registrations commanded 1.8 percent of the total market and 10.3 percent of the Battery-Electric Vehicle market, down from 2.8 percent and 21.6 percent, respectively, in the same month last year.

The US company’s ageing models are viewed as one reason for the dip, as traditional automakers and new Chinese manufacturers launch newer and cheaper EVs.

Meanwhile, CEO Elon Musk has been criticised for offering vocal and financial support to far-right groups in Europe. His role in the administration of President Donald Trump, who is threatening Europe with trade wars, is also viewed as a factor.

Growing boycott movements aimed at Tesla have risen up in the EU, as well as at home, with Tesla dealerships vandalised, and the company’s stock price dropping sharply.

Stuck in the slow lane

EV sales in the EU grew by 28.4 percent in January and February, but there is concern that the segment needs more support.

ACEA Director General Sigrid de Vries said the sales figures show that demand for TVs “remains below the level needed for the transition to zero-emission mobility to progress”.

He called for tax and purchasing incentives for consumers and further investment in recharging stations. Brussels is, meanwhile, preparing to ease emission reduction targets.

Still, Hybrid-electric vehicles remained the most significant market segment in the first two months of the year, rising to 594,059 registrations, or a 35.2 percent market share.

Electrified vehicles – either battery-electric (BEV), hybrid (HEV) or plug-in hybrids (PHEV) – sold in the bloc accounted for 58.4 percent of all passenger car registrations in February, up from 48.2 percent a year earlier.