Tesla's European sales have decreased by 45%, despite a 31% increase in the EV market in 2025 | Carscoops

      Volkswagen appears to have significantly profited from Tesla's decline, as evidenced by a notable rise in its electric vehicle (EV) sales.

      Tesla has been losing market share in Europe throughout 2025, even though overall EV sales have surged.

      The Model Y continues to be the most popular EV, but its sales have dramatically decreased.

      Volkswagen is gaining traction with its all-electric range, particularly with the ID.4 leading the charge.

      Tesla's sales in Europe have fallen sharply, experiencing a 45% decrease in January and February 2025 compared to the same months last year. In contrast, the electric vehicle market in Europe has seen an overall increase of 31%, with Volkswagen’s ID lineup being a major beneficiary of this trend.

      To break it down further, Auto News reported, using preliminary data from Dataforce that covers 99% of sales across the European Union, EFTA markets, and the UK, that Tesla sold only 25,852 vehicles in the first two months of 2025, a significant drop from 46,584 units in the same timeframe in 2024.

      The Model Y remains the best-selling EV with 14,773 units sold year-to-date. However, this reflects a drastic 53% decline compared to last year’s figures. It is important to note that a refreshed version of the Model Y has just been released, which may take time to impact sales.

      Tesla's Decline and Volkswagen's Ascendance

      The Model 3 sedan ranks 6th in sales with 10,785 units sold, representing a 26% decline from 2024. As for the Model S and Model X, they are virtually nonexistent in the European market, with only 272 combined units sold in January and February 2025 (128 and 144 units, respectively). This performance is unlikely to excite investors.

      So, what accounts for Tesla's steep decline in Europe? Apart from the changes to the Model Y, the shifting public perception appears to be linked to CEO Elon Musk's diminishing appeal. Backlash stemming from his controversial actions, political affiliations, and connections to former US President Donald Trump—who recently enacted additional tariffs on European imports—might be alienating European consumers.

      Meanwhile, Volkswagen has capitalized on Tesla's difficulties, with its EV sales soaring by an impressive 182% in February 2025. The ID.4, which sold 13,312 units in the first two months of 2025, holds the second position in European EV sales, narrowing the gap with the Model Y, which experienced a substantial 172% year-over-year increase.

      The VW ID.7, with 11,303 units sold, ranks third, surpassing the Model 3 temporarily. Volkswagen's ID.3 hatchback is close behind, securing the 5th position with 10,837 sales, a 141% increase compared to last year.

      A Changing Market Landscape

      The list of the top 10 best-selling EVs in Europe now includes two new models: the Renault 5 E-Tech (8th with 9,812 sales) and the Citroen e-C3 (10th with 8,142 sales). Other notable entries in the top 10 include the Kia EV3 (4th), Skoda Enyaq iV (7th), and BMW iX1 (9th).

      Official ACEA sales figures for this period are expected to be released next week.