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Tesla in trouble in Europe: sales plummet, is it the models or Musk?

Tesla's electric cars are losing ground in Europe while the market grows. Is it outdated models or political factors?

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A 49% drop for Tesla: worrying numbers

Tesla’s sales in Europe have plummeted by 49% in the first two months of 2025 compared to the same period last year. The data, released by the European Automobile Manufacturers’ Association (Acea), highlights a significant slowdown for the electric car brand that once dominated the sector.

This decline is even more striking when compared to the overall growth in the electric vehicle and hybrid market. While Tesla struggles, hybrid cars have surged by 18.7%, reaching 35.2% of total sales in the first two months of the year.

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Outdated models or a failing strategy?

One possible reason for Tesla’s poor performance is the perception that its lineup is becoming outdated compared to the competition. Rival manufacturers are introducing vehicles with longer range, faster charging technologies, and more advanced driver assistance systems.

Pricing strategy could also be a factor. While many automakers are offering more affordable electric cars to attract a broader audience, Tesla has maintained a more aggressive margin strategy, reducing prices less than its competitors.

The Musk factor: is politics hurting sales?

Beyond product-related issues, another major influence on Tesla’s declining sales is the public image of its CEO, Elon Musk. His association with former U.S. President Donald Trump has stirred controversy among European consumers, who tend to favor environmentally conscious and progressive policies.

Musk’s outspoken communication style and management decisions have negatively impacted sales in the past, and this latest controversy may have pushed some buyers toward brands perceived as less politically charged.

The rise of hybrids: is a shift coming?

While Tesla struggles, hybrid cars are enjoying a boom. With an 18.7% increase in the first two months of 2025, vehicles combining a battery-powered electric motor with a non-plug-in system are becoming increasingly popular. Their ability to offer lower fuel consumption while avoiding the range anxiety of fully electric vehicles makes them an attractive choice for European drivers.

This trend could mark a paradigm shift in the industry: hybrid cars are no longer seen as a transitional technology but as a solid and preferable alternative for many consumers.

Tesla’s uncertain future in Europe

The sharp decline in sales presents Tesla with a critical challenge: it must quickly innovate its product range and improve its brand perception in the European market. If it fails to respond with new strategies and more competitive models, it risks losing its electric car leadership to increasingly aggressive competitors.

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