Tesla's market share in Europe declined in February as sales of its electric cars dropped for the second consecutive month. Despite an increase in overall electric vehicle registrations in Europe, Tesla saw a 42.6% decrease in sales this year compared to the same period last year. The company held 1.8% of the total market and 10.3% of the battery-electric vehicle (BEV) market in February, down from 2.8% and 21.6% respectively in the previous year. Tesla sold fewer than 17,000 cars in European countries, the UK, and European Free Trade Association nations, compared to over 28,000 in the same month in 2024.

Challenges faced by Tesla in Europe include a limited and aging product lineup, increased competition from traditional automakers and new Chinese brands offering cheaper electric models. CEO Elon Musk's engagement with far-right political parties in Europe has also contributed to Tesla's declining sales in the region.

Despite a 26.1% rise in BEV sales in the market compared to February 2024, total car sales decreased by 3.1%. Tesla's sales may exceed other automakers' emissions, compensating for their carbon credits; however, this might change if Tesla's sales continue to fall.

The European Union recently introduced measures to support the adoption of electric vehicles, with BEV, HEV, and PHEV sales accounting for 58.4% of all passenger car registrations in February. In the same month, while overall new car registrations in the EU decreased by 3.4%, BEV sales increased by 23.7%, marking a second consecutive rise, and HEV sales went up by 19%.

Volkswagen and Renault experienced sales growth of 4% and 10.8%, respectively, in the EU, Britain, and European Free Trade Association nations in February. However, Stellantis sales declined by 16.2% during the same period.