Tesla’s European Struggles: EV Sales Surged in February

Key Takeaways

Electric vehicle (EV) registrations in Europe rose by 31.4% in January and February 2025, despite a significant decline in Tesla sales.
Traditional hybrids have now surpassed gas cars in sales, while all-electric vehicles hold a 15.2% market share.
Overall, the car market in Europe declined by about 3%, with several power types, except EVs and hybrids, seeing reduced registrations.

Electric Vehicle Market Surge Amid Tesla Decline

European electric vehicle sales have shown significant growth in the first two months of 2025, in stark contrast to a notable drop in Tesla registrations. In January and February, total EV registrations in the European Union (EU), European Free Trade Association (EFTA), and the UK reached 330,584 units, marking a 31.4% increase compared to the same timeframe last year. This surge comes even as Tesla, an industry leader in EVs, faced a dramatic 42.6% drop in registrations during the same period, selling only 16,888 vehicles in February compared to 28,182 the previous year.

In the European Union alone, EV sales soared by 28.4%, whereas Tesla’s registrations decreased by 49%. The American automaker reported sales of 19,046 units in the EU during January and February, down from 37,311 units last year. This contrasts sharply with the strong performance of other automakers, including BMW, MG, and Renault, who have gained market share as Tesla’s dominance wanes.

Interestingly, the first two months of 2025 marked a historic shift in the European automotive landscape, as the increase in EV registrations outpaced the previous year’s sales figures for traditional hybrids. Despite an overall decline in the car market, with registrations falling by 3% in the EU and 2.6% across the EU, EFTA, and UK, the demand for EVs and traditional hybrids remains robust.

In terms of market dynamics, EVs and hybrids were the only vehicle categories to see growth. Gas-powered vehicles saw a considerable drop of 21.9%, totaling 562,513 units, while diesel vehicles fell by 27.5%, dipping below 200,000 units. Plug-in hybrid electric vehicle (PHEV) registrations fell by 3.4%, totaling 148,156 units. Conversely, traditional hybrids, which cannot be plugged in, enjoyed a rise of 17.6%, achieving sales of 687,709 units, thereby overtaking gas cars to become the top-selling vehicle type in Europe.

Regarding market share, all-electric vehicles accounted for 15.2% of the total market in the EU, a notable increase from 11.5% the previous year. However, Tesla’s overall market share dipped from 2.8% to 1.8%, and its hold on the European EV segment fell from 21.6% in 2024 to 10.3% this year.

The encouraging increase in EV registrations this year follows disappointing numbers from the prior year, where registrations in the EU dropped by 5.9% compared to 2023. The shift in consumer preference and the growing competitiveness of other manufacturers signal a changing landscape in the automotive market as electric vehicles continue to gain traction in Europe.

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