Tesla Sales Plunge In Both China And Europe

Tesla experienced a significant drop in sales of its China-made vehicles in April, in contrast to the strong growth seen among other major Chinese electric vehicle competitors, as reported by CNEVPOST. According to the China Passenger Car Association (CPCA), Tesla’s sales for the month totaled 58,459 vehicles, including exports, marking a 5.96% decline compared to the previous year and a 25.84% decrease from March’s 78,828 units. From January to April, Tesla China’s overall sales saw an 18.31% year-over-year decrease to 231,213 units.

On the other hand, local competitors showed remarkable growth during the same period. Nio delivered 23,900 vehicles in April, a 53% increase from a year ago and almost 59% higher than in March. Xpeng reported 35,045 deliveries, its second-highest monthly figure ever, up by 273% year-over-year. Li Auto delivered 33,939 units, marking a 32% annual increase. Xiaomi EV also achieved over 28,000 deliveries in April, showcasing the escalating domestic competition while Tesla’s progress slowed down.

Tesla is also facing a notable decline in Europe, with sales in April 2025 dropping significantly across major markets. Formerly a leading electric vehicle player in the region, Tesla now experiences year-over-year declines exceeding 50% in France, the Netherlands, Sweden, Denmark, and the UK. In Germany, the largest European car market, Tesla’s sales fell by 46% despite a surge in overall electric vehicle adoption, according to ARS Technica.

The UK, where battery electric vehicle registrations rose by 8.1%, witnessed a 62% decline in Tesla’s sales, with only 512 vehicles sold out of more than 24,000 BEVs. This downturn comes amidst intensified competition from Chinese and European electric vehicle manufacturers, an aging product lineup, and negative public sentiment influenced by CEO Elon Musk’s political affiliations and controversial persona. Despite recent endeavors like the Model Y refresh, Tesla has struggled to reverse this trend.

GLJ Research’s Gordon Johnson recently suggested that Tesla is facing significant challenges in terms of demand and even the most enthusiastic supporters of the stock are beginning to acknowledge this. The report emphasizes that Tesla’s stock price, currently trading at a high valuation compared to its peers, is at risk due to deteriorating fundamentals, particularly declining car sales which constitute 86% of its revenue.

While there have been discussions about Tesla being more than just a car company, setbacks in solar, trucks, and batteries underscore that vehicle sales remain its core business. Even longtime Tesla supporters are expressing worries, highlighting that without a sales rebound, especially in key markets like China and Europe, investor confidence will continue to decline. The report concludes that unless Tesla swiftly revitalizes its automotive business, particularly as excitement around events like the June 1 robotaxi announcement diminishes, the stock may face a substantial downward reevaluation.