Reports of Tesla’s death in Europe have been wildly exaggerated. This was recently highlighted by JATO Dynamics, which noted that Tesla’s decline in Europe actually slowed down in March.
As per JATO Dynamics data, the Tesla Model 3 and Model Y also remained the kings of Europe’s battery electric vehicle sector in March 2025.
Tesla Europe’s Q1 2025
Tesla’s decline in January and February 2025 in Europe has resulted in quite a lot of alarmist reports about the electric vehicle maker. While Tesla noted in its Q1 vehicle delivery report that its sales decline was mostly due to the changeover to the new Model Y, critics nonetheless argued that Tesla’s brand has been utterly destroyed by the politics of CEO Elon Musk.
A look at JATO’s recent report, however, suggests that Tesla is starting to show some recovery in Europe. While Tesla saw a 38% year-over-year decline in the first quarter overall, the company’s drop became less severe as the quarter ended. In January, Tesla Europe recorded a severe 47% drop, and in February, the company’s year-over-year decline dropped to 44%. In March, Tesla Europe’s year-over-year decline had dropped to just 30%.
Interestingly, Felipe Munoz, Global Analyst at JATO Dynamics, noted that the Tesla Model 3 became a valuable player in the company’s Europe numbers in March. “As the brand continues to deal with a host of PR issues in addition to the changeover of the Model Y, Tesla is now relying on the Model 3 to offset the losses,” Munoz stated.
Tesla Model Y and Model 3 Still Dominates
Granted, Tesla’s decline in the first quarter in Europe paved the way for Volkswagen to become the region’s top BEV seller for Q1. However, when it came to the sales of individual BEVs in the region, the Tesla Model Y and Model 3 remained unstoppable. What was especially interesting was the fact that the Model Y and Model 3 topped Europe’s battery electric vehicle rankings in March despite the vehicles seeing a year-over-year decline in sales.
The Model Y topped Europe’s best-selling BEV list in March with a total of 15,164 units sold. Following the Model Y was the Model 3, which saw a total of 12,500 units sold in March. The mass market Tesla siblings’ sales figures were notably higher than their closest competitors. The Volkswagen ID.4, which was ranked 3rd, only saw sales of 7,675 units, and the Volkswagen ID.7, the 4th-best-selling BEV in Europe in March, only sold 7,438 units during the month.
“Despite the controversy surrounding the brand’s CEO and the limited availability of the new Model Y, Tesla continues to perform well as the most popular EV brand in Europe. Its success, amid these challenges, provides an indication of what European consumers are looking for in an EV,” Munoz stated.
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