TLDR:
- Tesla’s sales in UK and Germany hit two-year lows in April, dropping 62% and 46% respectively
- Tesla’s European market share has declined significantly while competitors like Volkswagen and BYD are gaining ground
- Tesla plans to launch a revamped Model Y in June to counter increasing competition
- Despite disappointing Q1 earnings, Tesla stock rose after confirming its robotaxi timeline
- Elon Musk plans to reduce his time with the Trump administration to focus more on running Tesla
Tesla is facing mounting challenges in key European markets, with new vehicle sales hitting their lowest point in more than two years. According to data released Tuesday, Tesla’s sales plummeted by 62% year-on-year in Britain and 46% in Germany during April, despite overall electric vehicle demand rising in both countries.
The decline marks a concerning trend for the EV maker. In Germany, Tesla sold just 885 cars last month, representing the fourth consecutive monthly decline this year. The cumulative year-to-date drop now exceeds 60%, according to data from Germany’s road traffic agency KBA.
Britain had previously bucked the negative European trend for Tesla this year. However, April sales dropped to just 512 new cars, down from 1,352 in April 2024, according to the Society of Motor Manufacturers and Traders.
This sales slump has eroded Tesla’s market position. Data from research group New AutoMotive shows Tesla’s year-to-date EV market share in the UK has fallen to 9.3%, down from 12.5% a year ago.
Competition Heats Up
While Tesla struggles, competitors are gaining ground. Volkswagen’s battery-electric sales in the UK jumped an impressive 194% to 2,314 vehicles last month. Chinese manufacturer BYD saw even stronger growth, with UK registrations up 311% to 1,419 cars.
The overall EV market continues to grow despite Tesla’s struggles. In Germany, electric vehicle sales increased by 53.5% in April, even as total car sales dropped slightly. Similarly, UK battery-electric car registrations increased by 8.1% in April, outperforming the broader car market which declined by 10.4%.
Tesla hopes to reverse this trend with the launch of a revamped Model Y. The company’s websites in Germany and Britain indicate that estimated deliveries of the updated model will begin in June. However, it will take several months before sales data shows whether the refreshed version can win back customers.
Musk’s Focus Shifts
Elon Musk’s activities outside Tesla may be affecting consumer perception. His closeness to U.S. President Donald Trump and his political activities have sparked protests against him and the company. There have even been reports of vandalism at Tesla showrooms and charging stations across the U.S. and Europe.
Following Tesla’s disappointing first-quarter results, where global sales and profit missed estimates, Musk announced two weeks ago that he would reduce his time working with the Trump administration to focus more on running the company.
Looking to Robotaxis
Despite the European sales challenges, Tesla’s stock has shown resilience in recent weeks. Shares rose 0.8% last week, following an 18% jump after the company’s first-quarter earnings report.
The earnings themselves weren’t particularly impressive. Tesla reported an operating profit of $399 million, down about 66% year over year and well below Wall Street estimates of approximately $900 million.
What appeared to buoy investor confidence was Tesla’s commitment to its robotaxi timeline. The company reaffirmed plans to launch a self-driving taxi service in June, and Tesla is leaning into this deadline. The Tesla AI account on X recently tweeted a reminder that June 1 was approaching.
— Tesla AI (@Tesla_AI) May 1, 2025
Shareholders believe autonomous driving technology could unlock a new wave of growth for the company, potentially offsetting current challenges in traditional vehicle sales.
In a recent development, Fox News host Lara Trump toured Tesla’s Austin, Texas plant and observed Tesla vehicles driving themselves off the assembly line. While this demonstration is still far from full autonomous driving on public roads, it suggests Tesla is making progress toward its robotaxi goals.
Tesla stock closed down 2.4% at $280.26 on Monday, amid broader market declines. Coming into Monday’s trading, Tesla stock was down about 29% year to date, though still up approximately 55% over the past 12 months.
The June robotaxi launch could be a pivotal moment for the company as it navigates through these challenging European sales figures.
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