April has proven to be a devastating month for Tesla in European markets, revealing a stark contrast to its performance in China. While the electric vehicle pioneer continues to see growth in Asian markets, its European sales have plummeted dramatically across multiple countries, raising questions about the company’s market strategy and future trajectory.
The Tesla bubble appears to have burst. Despite the introduction of the Model Y Juniper, which was predicted to bring great success to the company, Tesla has been accumulating losses for months. The downturn is especially striking in Europe, where Tesla has recorded significant declines in sales volume across eight different markets.
From market leader to struggling competitor
Let’s look at Spain as an example. For many consecutive months, two Tesla models dominated the electric vehicle sales rankings. But the latest registration data shows that while the Tesla Model 3 remains the best-selling electric vehicle year-to-date, it lost its monthly crown in April to the Renault 5 and Kia EV3.
The situation is similar with the Tesla Model Y. This vehicle, which has rarely outperformed the Model 3, has now fallen to fourth place, surpassed not only by the Renault 5 and Kia EV3 but also by the electric version of the Citroën C3.
These electric cars have accumulated sales drops of 44.4% (for the Model 3) and nearly 17% (Model Y) compared to April 2023 registrations. And this is just in Spain…
A European-wide collapse
Adding up all sales achieved in Spain during April, the decrease in registrations for Tesla amounts to 36%. This percentage is high, but Spain is actually one of the markets where Tesla’s results have been least catastrophic.
In Sweden, Tesla sales have fallen by a staggering 81%, while in the Netherlands and Denmark they have dropped by 74% and 67% respectively. The United Kingdom is another country where sales of the former plug-in vehicle sales leader show a sharp decline, in this case 62%. There are also negative figures in France (-59%), Belgium (-55%), and Germany (-46%).
In Norway, a reference country for electric mobility in Europe, the Tesla Model Y remains the best-selling model, but automotive experts warn that Tesla’s overall sales “are well below the level we’re used to.” (Have you noticed how many European countries are turning away from Tesla? It’s quite the pattern.)
What’s behind the collapse?
Identifying the reasons for Tesla’s current situation is complex. Norwegian experts suggest that “it may be a sign that many people now consider other brands equally interesting and offering roughly the same features in the same price segment.”
The most reasonable approach is to point not to one but to several factors that, combined, have caused Tesla’s tremendous sales slump (not just in sales, but also on the stock market where its share value has fallen by 42%). Industry analysts point to controversies surrounding the company’s leadership and strategy as key factors contributing to Tesla’s poor economic results.
Tesla Model Y Juniper: the savior that isn’t
Other expert voices point out that what’s causing Tesla to lose followers is that its vehicle lineup, with hardly any innovations, is starting to become outdated when facing competition. That’s why the launch of the Tesla Model Y Juniper (the updated version for 2025 of the electric SUV) was expected to shatter all sales records.
Reality has been very different. The Model Y isn’t climbing – it’s falling in registration lists. To be fair, deliveries of the improved version began just a few weeks ago, and currently only the rear-wheel drive (RWD) version is available.
The complete range offers three options: RWD, Long Range RWD, and Long Range AWD. It’s possible that Tesla followers are waiting for the arrival of versions with more range, although they will also be more expensive: the rear-wheel drive costs $43,990, a rate to which you must add $5,000 to buy the Long Range RWD version and $8,000 for the all-wheel drive version.
What do you think? Are we seeing the beginning of the end for Tesla’s dominance in the EV market, or just a temporary setback? The coming months will be decisive for the American electric vehicle manufacturer.
