Tesla sales drop 28% in Europe as Chinese EVs gain market share despite new EU tariffs

Tesla's new car sales in Europe fell for the fifth consecutive month in May, dropping 27.9% year-on-year to 13,863 units, according to data from the European Automobile Manufacturers Association. The company's market share declined to 1.2%, down from 1.8% a year earlier. Tesla faces growing competition from Chinese EV makers like BYD, which nearly matched Tesla's sales in May. Meanwhile, European protests and reputational damage linked to Elon Musk’s political involvement—including his support for President Trump and clashes with federal agencies—have impacted the brand. Despite EU tariffs, Chinese automakers doubled their European market share to 5.9%, aided by strong plug-in and hybrid offerings. Tesla's stock is down over 15% in 2025, though its Model Y has shown positive signs in markets like Norway.