Tesla’s European sales have experienced a significant decline in January 2025, plummeting by 45% compared to the previous year. This drop came despite an overall surge in electric vehicle (EV) demand in Europe, where competitors like Volkswagen AG, Stellantis NV, and Renault SA are gaining ground. The company registered only 9,945 vehicles sold, a stark contrast from the 18,161 units recorded in the same period last year. The decline is attributed to several factors, including Tesla’s shift in production lines for its Model Y SUV and CEO Elon Musk’s controversial political activities in Europe, which have impacted consumer perception of the brand. Operational challenges, like shortages due to a sales surge followed by a new model design shift, also contributed to this drop.