According to data from research platform JATO Dynamics, Tesla's electric vehicle sales in Europe in February lagged behind well-established brands like Volkswagen, BMW, and Chinese competitors. The decline in Tesla's sales in Europe is attributed to various factors such as the company's limited model lineup, Elon Musk's controversial political engagements, and the phasing out of the existing Model Y.

Felipe Munoz, a Global Analyst at JATO Dynamics, explained that Tesla's sales are particularly affected during a model changeover due to its focused model portfolio. In February, Tesla's battery-electric vehicle registrations in European markets dropped by 44% compared to the same period in 2024, with under 16,000 cars sold, resulting in a market share decrease to 9.6%, the lowest in the past five years.

On the other hand, Volkswagen's electric vehicle sales surged by 180%, with BMW and Chinese brands also outselling Tesla in the region. Chinese-owned brands like BYD, Polestar, Xpeng, and Leapmotor witnessed significant increases in BEV sales. Conversely, Geely-owned Volvo and SAIC-owned MG experienced declines in electric car sales. Overall, total car sales across the European markets dropped by 3% in February, while BEV registrations increased by 25%.