Tesla's tough start to 2025 continued into May, with European sales following a downward spiral.
What's happening?
According to Carscoops, Tesla has seen a 37.1% decrease in sales across Europe in 2025 and a 27.9% drop in May alone, marking five straight months of declining sales.
The outlet Demstate suggested that a poor economic outlook for the electric vehicle maker could lead to job losses for workers down the line, should the situation persist.
Demstate noted that the "corporate culture has often been criticized for its lack of transparency and disregard for labor rights." Previous labor concerns have included allegations that Tesla silenced workers, blocked efforts to unionize, and violated wage laws. The company disputed the allegations in each case.
Why are Tesla's sales issues concerning?
The EV company's rough start to 2025 has seen dwindling sales play out worldwide, with numbers taking hits in markets like the United States and China.
The reasons for this appear to be myriad. In Europe, many point to chief executive officer Elon Musk's ties to far-right movements in the United States, Germany, and Italy as a possible contributing factor — one that may have scared off a percentage of prospective customers who found EVs' environmental benefits appealing.
Recalls may not have helped things. And, more recently, a less-than-favorable rollout of robotaxi services may be muddying the waters too.
The potential for these developments to mar the reputation of EVs across the board is a concern for some, including environmental advocates who see the more renewable transportation method as a key to unlocking the global clean energy transition.
What's being done?
Meanwhile, EV options have grown considerably. China's BYD previously surpassed Tesla in global sales, for example, with strong footholds in every market outside the U.S. so far. And many of the non-Tesla EV options appear to be cheaper or offer additional versatility.
Potential buyers have a range from which to choose so that the struggles of any one brand need not spell doom for the EV market as a whole or for clean, renewable energy.
Musk and Tesla, meanwhile, appear to have shifted some focus away from improving the automaker's models and toward fully self-driving cars and robotaxis. The new Model Y has also launched at a more affordable price point, and the company hopes its updated features will lure consumers back to the brand.
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