Sales of Elon Musk’s Tesla have plunged by approximately 40% in Europe over the first half of 2025, according to new data from the European Automobile Manufacturers’ Association (ACEA).

The decline is just the latest effect from increased pressure from Chinese automakers—particularly BYD—that are gaining ground in the rapidly expanding electric vehicle (EV) market on the continent. But European consumers have also shown a dislike for Musk’s very visible politics, which may be making it a less preferred option in a market already saturated by EV choices.

Either way, it doesn’t look good for Tesla (TSLA) .

“Tesla sales continue to be in hard reverse in Europe, suggesting Elon Musk’s divisive role in politics is still hurting the brand on this side of the Atlantic,” AJ Bell investment

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