Recent data reveals Tesla is experiencing significant sales declines in key markets, even as electric vehicle adoption continues to accelerate globally. According to the China Passenger Car Association, Tesla’s China-manufactured vehicle sales dropped nearly 6%
year-over-year in April, with only 58,459 units sold including exports. This represents a substantial 25.84% decrease from March’s 78,828 units. The first four months of 2025 saw Tesla’s total sales in China fall 18.31% compared to the previous year, reaching 231,213 units.
Meanwhile, Chinese competitors are showing remarkable growth. Nio achieved 23,900 deliveries in April, marking a 53% increase from the previous year and a 59% rise from March. Xpeng recorded its
second-highest monthly deliveries with 35,045 units, representing a 273% year-over-year increase. Li Auto delivered 33,939 vehicles, up 32% annually, while newcomer Xiaomi EV reported over 28,000
deliveries.
The situation in Europe appears even more challenging for Tesla, with April 2025 showing dramatic sales decreases across major markets. The company’s performance has deteriorated significantly in several countries, with year-over-year declines exceeding 50% in France, the Netherlands, Sweden, Denmark, and the UK. Germany, Europe’s largest automotive market, witnessed a 46% drop in Tesla sales despite overall growth in EV adoption. In the UK, Tesla registered only 512 vehicles out of more than 24,000 BEVs sold, representing a 62% decline, even as total BEV registrations increased by 8.1%.
Industry analysts attribute these declines to multiple factors, including intensifying competition from Chinese and European manufacturers, Tesla’s aging product lineup, and public perception issues related to CEO Elon Musk’s controversial public statements and political positions. Recent product updates, such as the Model Y refresh, have failed to reverse these negative trends. Only Italy and Norway showed any positive growth among European markets.
GLJ Research analyst Gordon Johnson has issued a warning about Tesla’s market position, suggesting the company faces serious demand challenges. The report emphasizes that with automotive sales comprising 86% of Tesla’s revenue, the company’s high market valuation appears increasingly vulnerable. Despite efforts to position Tesla as more than an automotive manufacturer, unsuccessful ventures in solar power, trucks, and battery technology underscore its dependence on vehicle sales.
The deteriorating sales figures in China and Europe have raised concerns about Tesla’s ability to meet even conservative delivery estimates. Traditional Tesla supporters are expressing growing unease about the company’s trajectory, noting that without a significant improvement in sales performance, particularly in these crucial markets, investor confidence may continue to decline.
The timing of these challenges is particularly significant as Tesla prepares for its June 1 robotaxi announcement. However, analysts suggest that unless the company can demonstrate a substantial turnaround in its core automotive business, enthusiasm surrounding such announcements may not be sufficient to maintain current market valuations. The combination of falling sales in major markets, increased competition, and shifting market sentiment poses a significant challenge to Tesla’s market position and future growth prospects.