Listen to “AAH #749 – 2025: A Second Half Collapse in the Auto Market?” on Spreaker.
– EVs Seem Stick in First Gear (If They Had One)
– Product Plans in Disarray
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Greg Migliore, Editorial Director, VerticalScope
Peter DeLorenzo, The Autoextremist
Gary Vasilash, shinymetalboxes.net
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Peter Di Lorezo was sloppy in doubling Tesla’s sales decline in Europe. Not 60%, 40%. Bad, but not as bad.
AI Overview
Tesla’s European sales have seen a significant decline in the first half of 2025. Here’s a summary:
Overall Sales Drop: From January to May 2025, Tesla’s European sales fell by 37.1%. This is based on the first five months of the year, providing a strong indicator of the first half performance.
May Sales Decline: In May 2025 alone, Tesla’s European sales were down 27.9% year-over-year.
April Sales Plunge: In April 2025, the drop was even more dramatic, with a 49% decrease in sales compared to the previous year.
First Four Months: Sales in the January-April period declined by nearly 40%.
This decline is in contrast to the overall European electric vehicle market, which has continued to grow. The slump is attributed to several factors, including:
Reputational Challenges: CEO Elon Musk’s political activities have faced backlash and protests in Europe.
Aging Model Lineup: Tesla’s models are facing increasing competition, particularly from Chinese manufacturers like BYD, and its updated Model Y has not significantly boosted sales.
Supply Issues: Temporary factory shutdowns for Model Y upgrades have also impacted production and supply.
This performance has led to a decrease in Tesla’s European market share.