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Tesla’s sales keep dropping.
In the U.S. and globally as the electric vehicle market expands. - General Motors and other leading automakers initiated an aggressive push into electric vehicles in the U.S., which reduced Tesla’s market share.
- Across Europe, Tesla faces heightened competition from both BMW and Volkswagen along with electric vehicles from China.
Tesla is ceding market share both domestically and internationally.
As sales keep declining, the company is losing market share to competitors that have introduced numerous new models in recent years.
In the initial three months of 2025, General Motors, Ford, and Volkswagen emerged as major victors in the U.S. automotive sector. During this period, the electric vehicle (EV) market expanded by 11%, reaching almost 300,000 vehicles sold, as reported by first-quarter statistics provided by Cox Automotive.
In Europe, local car manufacturers such as BMW and Volkswagen have witnessed a significant surge in their electric vehicle sectors, whereas Chinese companies like BYD and Geely have aggressively expanded into the market.
Major car manufacturers like General Motors are resisting efforts in the U.S.
Cox reported that Tesla sold approximately 128,100 cars in the U.S. for the initial three months of this year. This figure represents an 8.6% decrease from the previous year and a significant 21% drop when contrasted with sales data from 2023.
Even though Tesla’s portion of the U.S. electric vehicle market has decreased from 51% to 44% within the last year, according to Cox data, it still leads the field by a significant gap.
However, a coalition of conventional carmakers, spearheaded by Ford and GM, has been mounting an assault against Tesla over the past several years.
GM has introduced approximately a dozen electric vehicles under the Cadillac, Chevrolet, and GMC brands in the last year, covering models like the
A budget-friendly Chevy Equinox SUV with a price tag of $34,000.
to the $300,000-plus ultraluxurious
Cadillac Celestiq sedan
They have contributed to achieving an 11% market share as sales increased by 94% YoY in the first quarter, as reported by Cox.
According to Cox, when you add Honda and Acura, who joined the electric vehicle market last spring with two SUVs produced by GM, the share held by General Motors along with its partners reaches 16%.
In another place, VW has seen a rise of 55%, BMW is up by 26%, Nissan’s growth stands at 23%, and Ford, holding roughly 8% of the market, experienced an uptick of 12% in sales.
The significant beneficiaries also encompassed Volkswagen, experiencing a 55% surge in sales compared to the previous year; BMW, marking an uptick of 26%; Nissan, showing growth of 23%; and Ford, holding roughly 8% share of the market, witnessed a 12% rise in sales, as stated by Cox.
Smaller-scale players in the electric vehicle market also experienced remarkable expansion. According to Cox, Porsche, Toyota, Subaru, and Volvo witnessed respective increases of 250%, 196%, 173%, and 173% in their sales compared to the previous year.
German and Chinese electric vehicles are increasingly gaining ground in Europe.
In Europe, Tesla’s downturn has been even more pronounced.
In the initial two months of 2025, the company’s vehicle sales plummeted by approximately 43% compared to the corresponding timeframe in the previous year. This significant drop was reported by the European Automobile Manufacturers’ Association based on industry statistics.
increasing opposition towards CEO Elon Musk
and his support for the extreme right-wing party, Alternative für Deutschland.
Despite the broader trends, Tesla’s decline continues.
Electric vehicle sales in Europe increasing by almost 30%
During the same timeframe, an analysis by the European Automobile Manufacturers’ Association revealed that some of Tesla’s competitors in Germany seem to have gained advantage due to Tesla’s weakened market position.
Last week, Volkswagen announced that it had more than doubled its electric vehicle sales in Europe during the first quarter. Meanwhile, the premium marque BMW saw a 64% increase in the sale of completely electric cars.
This presents a significant issue for Tesla in its third-largest market, where they sold approximately 327,000 electric vehicles last year—and the situation might soon become even more challenging.
Chinese car manufacturers BYD, Xpeng, and Geely are rapidly increasing their presence in the European market. Despite having a minimal market share currently, initial statistics indicate that BYD is starting to make significant strides at Tesla’s expense.
According to data from the market research firm Argus Media, BYD outperformed Tesla in Italy and Spain during the first quarter of 2025, narrowing the gap with its competitor in the UK and Germany. The company saw significant increases in sales despite these conditions.
Tesla’s market share plunged
.
The Chinese electric vehicle leader backed by Warren Buffett set a new high for car exports in the initial three months of the year as it expanded its competition with Tesla worldwide.
Geely’s Swedish electric vehicle brand, Polestar, saw a 76% rise in worldwide sales for the initial three months of this year.
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