Tesla’s European Engine Stalls as Rivals Zoom Past

Tesla’s (TSLA) dominance in the European EV market is running out of road. In April 2025, Tesla sales across Europe nosedived by nearly 50% year-over-year, clocking in just 7,261 deliveries—down from 14,228 a year earlier. It’s the fourth straight monthly drop, and it comes even as European EV sales overall are speeding ahead, up 27.8%.

Tesla Takes a Hit from the Political Crossfire

Tesla’s woes in Europe aren’t just about pricing or competition—they’re political. Elon Musk’s growing alignment with former President Donald Trump and far-right parties like Germany’s AfD has set off alarms across Europe. The backlash is tangible: protests at dealerships, online boycotts, and a branding crisis that’s burning through goodwill at lightning speed.

Tesla Misses the Mark with Model Y Refresh

Tesla tried to put its foot back on the gas with a refreshed Model Y—but the strategy fizzled. The update hasn’t reversed the decline. Tesla’s share of the European car market dropped to a meager 0.7%, half of where it stood last year. With no flashy new models in sight and EV competition heating up, the refresh was more sputter than spark.

Tesla Cedes Ground to BYD and Euro Champs

While Tesla stalls, others are cruising. BYD (BYDDF) (BYDDY) beat Tesla at its own game, outselling it for the first time in Europe with 7,230 BEVs in April. That puts Tesla in the rearview mirror. Meanwhile, European brands like Volkswagen and Renault are accelerating, capitalizing on regional loyalty and rolling out EVs with both price appeal and local flair.

Tesla’s European slowdown isn’t a pothole—it’s a full-blown detour. Between political baggage, stale product lines, and intensifying competition, Tesla’s once-smooth ride through Europe is starting to hit serious traffic. Unless Tesla finds a way to course-correct—fast—it risks watching Europe become someone else’s highway to EV dominance.

Is Tesla a Buy, Sell, or Hold?

According to TipRanks data, Tesla currently holds a “Hold” consensus rating from 37 analysts. That breaks down into 16 Buy ratings, 10 Holds, and 11 Sells. The average 12-month TSLA price target sits at $282.70, implying a 21% downside from the current price of $358.43. The caution from Wall Street echoes broader concerns: despite Tesla’s brand recognition, its grip on key markets like Europe may be slipping.

See more TSLA analyst ratings