Tesla Struggles in France as Vehicle Deliveries Drop Sharply Amid Broader Brand Challenges
Tesla is facing significant headwinds in France, with new data showing a sharp decline in vehicle deliveries during May — another troubling sign for the electric vehicle (EV) giant as it contends with growing political controversies and intensifying competition in global markets.
According to the French automotive industry association PFA, Tesla delivered only 721 vehicles over a 19-day span in May 2025. That’s a staggering 67% drop compared to the same period last year, when 2,197 vehicles were sold. The sharp decrease comes despite the broader French car market experiencing a far less severe downturn, with overall vehicle deliveries falling just 12.3% year over year.
The figures for the first five months of 2025 also paint a bleak picture. Between January and May — a 103-day period — Tesla sold 8,277 cars in France. That represents a 47% decline compared to the 15,685 vehicles delivered over the same 104-day period in 2024. In contrast, the broader French automotive market contracted by a more modest 8.3% over that same timeframe.
Weak Performance Despite New Model Y Rollout
Tesla’s downturn in France is part of a broader European trend. The EV leader has seen declining sales in other key European markets as well, including Germany and the United Kingdom — countries that have historically been strongholds for the brand. This slump comes even after the recent release of a refreshed version of the popular Model Y, which had been expected to reinvigorate sales.
The dip in performance across multiple European countries has raised fresh concerns about Tesla’s current strategy and market positioning, especially as the company prepares to release its second-quarter global sales and production figures in early July.
Unlike many of its competitors, Tesla doesn’t provide detailed geographic breakdowns in its earnings reports, which means insights from national auto industry bodies like France’s PFA or Germany’s Kraftfahrt-Bundesamt are often the only indicators of regional performance.
The Elon Musk Factor: Political Controversy Meets Business
Tesla’s declining numbers in Europe come at a time when CEO Elon Musk has been increasingly vocal in the political arena — a move that may be alienating segments of the European customer base.
Earlier this year, Musk drew widespread criticism after expressing support for the far-right political party Alternative for Germany (AfD), a move that stirred considerable backlash in the German public and media. His comments were seen as particularly controversial given Europe’s sensitive political landscape, and some analysts speculate that this may have contributed to a cooling of consumer enthusiasm for the Tesla brand.
Musk, for his part, seems unfazed. In a recent interview at the Qatar Economic Forum, he downplayed the importance of the European market in Tesla’s global strategy.
“Europe is our weakest market. We’re strong everywhere else,” Musk said, adding, “The European car market is quite weak.”
While there is truth in Musk’s assessment that Europe’s automotive market is facing broader challenges — including sluggish economic growth and declining demand for electric vehicles — Tesla’s steep declines stand out, especially in comparison to more moderate contractions across the industry.
Headwinds in China and the U.S. Add to Pressure
The issues in Europe are just one part of a larger set of challenges facing Tesla. The company is also struggling in China, its second-largest market. Data from the China Passenger Car Association revealed that Tesla was the only major new-energy vehicle (NEV) manufacturer to post a decline in sales in April, while local rivals like BYD continue to gain ground and aggressively expand their market share.
BYD, in particular, has been growing rapidly and challenging Tesla’s dominance not only in China but also in emerging global EV markets. Although BYD has faced its own stock price setbacks following steep price cuts, its growing footprint represents a serious threat to Tesla’s long-term position.
Meanwhile, in the United States — Tesla’s home market — the brand is also grappling with growing criticism and consumer fatigue. Musk’s involvement in controversial political commentary, along with his brief participation in the so-called “Department of Government Efficiency” (DOGE), has raised questions about his leadership focus. Musk recently announced he would be stepping away from the DOGE initiative, but the reputational impact remains.
Tesla’s detractors argue that the company has become too intertwined with Musk’s public persona, making it vulnerable to fluctuations in his popularity and political statements. Supporters, on the other hand, believe Musk’s unconventional leadership style is central to Tesla’s innovation and resilience.
Competitive Pressure Mounts as the EV Landscape Shifts
The broader EV landscape is evolving quickly, and Tesla is no longer the undisputed leader it once was. Legacy automakers like Volkswagen, Ford, and Hyundai are rolling out a growing number of high-quality EVs at competitive price points. Additionally, new entrants in both the U.S. and Asia are pushing the boundaries of technology and affordability.
In Europe, where environmental regulations and emissions targets are stricter, many automakers are investing heavily in local production and infrastructure — moves that could give them an edge over Tesla, which still imports a large portion of its vehicles into the region.
Compounding Tesla’s challenges are a slowing pace of EV adoption in some markets, consumer concerns over battery life and charging infrastructure, and rising competition in the affordable EV segment. These factors, combined with political missteps and inconsistent product rollouts, may explain why Tesla’s dominance is being chipped away.
What’s Next for Tesla?
As the EV market matures, Tesla will need to reestablish confidence among both consumers and investors. The upcoming quarterly report in July will be closely watched, especially given the weak signals coming from key international markets.
While Tesla has historically bounced back from challenges — including production issues, regulatory scrutiny, and even public relations crises — the current landscape may prove more difficult to navigate. With fierce competition in China, declining sales in Europe, and a divided consumer base in the U.S., Tesla’s path forward is more complex than ever.
Analysts suggest that in order to maintain growth, Tesla may need to diversify its lineup, refine its pricing strategy, and possibly decouple the brand from Musk’s more controversial public persona. At the same time, investment in local manufacturing facilities, improved customer service, and next-gen battery technology could help bolster Tesla’s appeal and regain trust.
Final Thoughts
Tesla’s 67% drop in French vehicle deliveries in May is a stark reminder that even industry leaders can stumble. Whether due to political missteps, market saturation, or increased competition, the road ahead looks more challenging than it has in years. As the company prepares to unveil its quarterly results, the pressure is on Elon Musk and his team to reassure stakeholders that Tesla still has what it takes to lead the EV revolution — not just in the U.S., but around the world.
