EV sales are up in Europe. Why are Tesla's down by nearly 50%? The company initially blamed the Model Y refresh, but that excuse isn't holding up.

Despite Musk’s optimistic talk about the Model Y’s sales prospects, Tesla’s brand crisis appears to be deepening. And it’s not because European consumers are souring on electric vehicles; in the first four months of 2025, new battery-electric car sales grew by 26.4 percent, to 558,262 units, capturing 15.3 percent of the total EU market share.

Despite steep tariffs, the Chinese carmaker leapfrogged Tesla in April, in what an analyst called a “watershed moment” for the continent’s auto market.

The Chinese EV giant is doubling down on Europe by building a major facility in Hungary as it looks to capitalize on Tesla's slumping sales.