Tesla sales crash in Europe; Musk’s Trump ties deepen company turmoil

Tesla’s latest financial results reveal a turbulent start to 2025, with net profits collapsing by more than 70% compared to last year. Between January and March, global profits totalled $409 million (£308.5 million) — down sharply from $1.4 billion (£1.06 billion) a year earlier — marking the second consecutive annual first-quarter decline after a 45% drop in 2024.

// STATISTA

The company’s European outlook was particularly bleak. Tesla’s quarterly sales tumbled by approximately 62% in Germany, 55% in Sweden and Denmark, almost 50% in the Netherlands, and 41% in France. The UK was the sole bright spot, posting a modest 3.5% rise in registrations. However, Tesla’s market share there also shrank by over four percentage points to 10.7%.

// STATISTA

Observers attribute Tesla’s woes to intensified competition from Chinese manufacturers, slowing electric vehicle (EV) demand, and political controversies surrounding CEO Elon Musk’s advisory role in Donald Trump’s administration. Musk addressed concerns during a call with investors: “Starting next month, I will be allocating far more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done.”

Despite the profit slump, Tesla remained dominant in the US EV market, selling 128,100 units in the first quarter — more than the next top ten EV brands combined. Ford followed distantly, with 22,550 units sold, reflecting an 11.5% year-on-year increase.

The figures underscore a crucial challenge for Tesla: preserving market leadership as public sentiment shifts and global competition intensifies. The coming months will test whether Musk’s renewed focus can steer Tesla back to firmer ground.

▪ Cover: Flickr/The White House. (Licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.)