Tesla's European car sales nosedive for fifth month as customers switch to Chinese EVs

• Tesla new car sales in Europe fell 27.9% year-on-year. in May.
• The U.S. EV maker has sustained brand and reputational damage in part due to CEO Elon Musk's incendiary rhetoric and political activity.
• Chinese manufacturers, meanwhile, maintained their strong momentum in Europe's new car market last month.

Tesla new car sales in Europe fell for a fifth straight month in May, according to data from the European Automobile Manufacturers Association (ACEA), as customers pivot to cheaper Chinese electric vehicles.

Data published Wednesday by ACEA found that Tesla's car sales in the European Union, Britain and the European Free Trade Association fell to 13,863 units in May, down 27.9% year-on-year.

Tesla's European market share also dropped to 1.2% from 1.8% in May 2024.

The figures reinforce a downward regional trend for the U.S. EV maker, which has suffered brand and reputational damage in part due to CEO Elon Musk's incendiary rhetoric and political activity.

Musk spent nearly $300 million to help re-elect U.S. President Donald Trump and subsequently led a tumultuous initiative to slash federal agencies. Protests erupted at Tesla dealerships across Europe in response.

The Tesla CEO has since left the Trump administration, amid a bitter online feud with the U.S. president.

Chinese manufacturers maintained their strong momentum in Europe's new car market in May despite European Union tariffs on Beijing's EVs.

Chinese automakers sold 65,808 units last month and more than doubled their market share in the region to 5.9%, according to data published Tuesday by JATO Dynamics.

Tesla continues to battle rising competition from traditional automakers, as well as Chinese players. Auto giant BYD, for example, was recently found to have sold more pure electric cars in Europe than did Tesla for the first time.

It had been thought Tesla's revamped Model Y compact sport utility vehicle could help to deliver a turnaround in the firm's fortunes. The Model Y was recently found to be instrumental in delivering a rebound in new car sales in Norway.