Political alliances and rival automakers are hurting sales.
Transcript:
Electric vehicle sales soared across Europe in the first three months of the year, but don’t tell that to Tesla. Despite EV’s getting a 24% bump to begin 2025, Tesla sales in the region plunged 36%.
According to auto industry trade groups in Europe – Tesla saw a 62% drop in sales in the U.K., a 59% drop in France, and a staggering 81% decline in Sweden.
Sales have dropped for a few reasons, one of which has been Elon Musk’s political ties. Aside from his role as DOGE director, Tesla’s CEO has backed far-right candidates in Germany and the U.K.
The threat of tariffs is also causing car buyers to look elsewhere and there’s growing competition from China’s BYD, which is poised to overtake Tesla as the world’s largest EV maker at some point in 2025.
Tesla has had a rocky overall start to the year. In January, it reported 2024 was the first year in which it ever saw decline in annual sales. And then, in Q1 of 2025, it reported a 71% drop in net income.
That’ll do it for your daily briefing. From New York City, I’m Kelsey Barberio with TheStreet.
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