Tesla goes over the ledge as its February sales sunk to over 47% in Europe. According to the data from the European Automobile Manufacturers’ Association, or ACEA, in the last two months Tesla tanked up to 49% in sales, while data from Jato Dynamics reveal Volkswagen’s sales skyrocketed by 180% in February. This stark contrast underscores Tesla’s growing challenges as legacy automakers capture market share with a wide range of electric lineups.
Tesla Model 3, Model Y remain best-sellers
Finally, there’s something to cheer about for Tesla as Model 3 and Model Y continue to be the top two most successful EVs in the European market. Unfortunately for the Elon Musk-led company, Volkswagen’s ID.4, ID.7, and ID.3 captured third, fifth and sixth positions in the market, which combined has helped the German car manufacturer propel to numero uno spot.Â
According to Jato Dynamics, even though Europe’s automobile sector’s sales declined by 2.6% in February, EV demand surged 26% last month as 1.64 lakh units were sold. The market witnessed year-to-date growth of a mindboggling 312%. A record 3,29,700 EVs were sold in the first two months of 2025, capturing 17% market share. This explosive growth comes despite softening overall demand, signalling a decisive consumer pivot toward electrification. As EVs now account for nearly one in five new cars, automakers face mounting pressure to accelerate their electric transitions or risk falling behind in Europe’s rapidly evolving automotive landscape.Â
Why are Tesla sales in the doldrums?
A lot has to do with Musk’s links with US President Donald Trump and his support to Germany’s right-wing party, AfD. Tesla is struggling to compete with its competitors, like BYD, and Xiaomi, which are launching EVs at nearly half the price.
Volkswagen has claimed Europe’s top EV spot by selling nearly 20,000 units in February alone by dominating every price segment. While Tesla struggles with a shrinking lineup, VW’s strategic electric portfolio (from the budget ID.2 to premium ID.7) now blankets the market, proving that variety, wins the EV race.
Last month, BMW and Mini together sold nearly 19,000 units, according to Jato Dynamics data. Meanwhile, BYD saw a 94% surge in its European sales, surpassing 4,000 units.
