Tesla’s sales in Europe plummeted during the first quarter of 2025, dealing a fresh blow to CEO Elon Musk, who has come under fire for his close ties to Donald Trump’s administration.
According to new data from the European Automobile Manufacturers’ Association, Tesla registrations across the 27-nation bloc fell by 45%, dropping to just over 36,000 vehicles. In March alone, sales declined by 36%—the steepest drop among major carmakers—despite overall growth in electric vehicle sales.
The company has faced growing resistance in both Europe and the United States, where vandalism, protests, and consumer boycotts have targeted showrooms. The backlash has intensified over Musk’s involvement in policy decisions under Trump’s leadership, particularly public service cuts.
On Tuesday, Tesla reported a staggering 71% decline in first-quarter profits, attributing the downturn to “changing political sentiment” and weakening demand.
In response, Musk announced plans to scale back his advisory role with the Trump administration starting in May, stating that he would refocus his attention on leading Tesla through challenging times.
The car industry is also grappling with the fallout from Trump’s aggressive trade agenda. His decision to slap a 25% tariff on imported vehicles has rattled automakers and raised fears about global supply chain disruption.
“Uncertainty in the automotive and energy markets continues to grow, as rapidly shifting trade policies are impacting the global supply chain and cost structures for Tesla and our peers,” the company said in a statement.
Tesla also flagged US tariffs as a significant headwind, alongside what analysts describe as an aging product lineup that may be contributing to its declining appeal.
