Tesla Starts 2025 Off With A Sales Slump In Europe & California

Factors attributed to this Tesla sales slump includes the lack of fresh affordable models, as well as a controversial CEO.
Tesla faces significant market headwinds as sales decline across major European markets and California, with fresh data revealing sharp downturns in several of its key sales regions. The American EV manufacturer for instance recorded a nearly 12% sales decrease in the United Kingdom, despite the country experiencing record-high EV registrations in January 2025, according to New AutoMotive data.
This recent sales decline has pushed Tesla from its previous runner position in UK EV sales, down to seventh place. Or to put it in another more dramatic sense, the American automaker’s sales over there now lags behind automakers like Volkswagen, Peugeot and even Mercedes-Benz.
Now more dramatic decreases were too observed in other European markets, with France reporting a 63% sales decline. Sweden and Norway meanwhile saw drops of 44% and 38% respectively, and the Netherlands experiencing a 42% reduction. California, representing the largest U.S. car market with over 1.7 million vehicle registrations in 2024, mirrored the UK’s 12% decline.
Market analysts currently attribute Tesla’s challenges to multiple factors, including increased competition and delayed product innovation. CEO of New AutoMotive Ben Nelmes points to Tesla’s lack of new mainstream models since the 2020 Model Y launch as being a critical factor to its recent sales slump, with the recently facelifted version of said e-SUV also not presently available yet in these aforementioned sales regions.
For those who have been keeping an ear on the news lately as well, it should come as no surprise that consumer sentiment toward Tesla appears to have been soured by CEO Elon Musk’s public persona and divisive political activities. A recent Electrifying.com survey revealed that 59% of current and prospective British EV owners cited Musk’s influence as a deterrent to purchasing Tesla vehicles. Similarly, Swedish polling data from Novus showed a sharp decline in positive perception of Tesla, dropping from 19% to 11%, while negative views increased from 47% to 63%.
These recent sales slump across both sides of the Atlantic comes right after Tesla reported its first annual decline in deliveries in 2024, though it should nevertheless be worth noting that the American EV manufacturer is still the world’s second biggest seller of electric cars after BYD. The company’s stock performance has since still remained strong as well, with shares doubling over the past year and maintaining a forward price-to-earnings ratio exceeding 131, surpassing both traditional automakers and major tech companies.