Tesla Inc. TSLA has seen a significant drop in new car sales in Spain, while competitors’ electric vehicle sales have seen a sharp increase.
What Happened: Data released by industry group ANFAC on Monday reveals that Tesla sold 571 units in Spain in April, marking a 36% decrease from the same period in the previous year. In contrast, other brands’ electric car sales have surged 54%, indicating a shift in consumer preference, as reported by Reuters.
The decline in Tesla’s sales is in stark contrast to the overall growth in the electric vehicle market in Spain, suggesting a significant shift in consumer preference towards other brands.
According to ANFAC’s report, sales of Chinese automakers BYD BYDDF, MG, and Omoda in Spain have surged by 644%, 80%, and 346%, respectively, so far this year.
This decline in sales is not an isolated incident. Tesla has been losing ground in Europe as well, with a 28% sales decline reported in April 2025. The company’s market share in the region has dropped to 2% from 2.9% around the same time in the previous year.
Why It Matters: Tesla’s decline highlights broader brand issues, growing competition from Chinese automakers, aging vehicle models, and CEO Elon Musk‘s increasingly polarizing public image. Musk’s support for far-right politics in Europe has sparked protests and led to vandalism at Tesla showrooms and charging stations in both the U.S. and Europe
In an attempt to expand its global presence, Tesla has started sales operations in Saudi Arabia. However, the declining sales in Europe and now Spain raise concerns about the company’s growth prospects in new markets.
The shift in consumer preference towards other brands in the electric vehicle market is a significant development that could have far-reaching implications for Tesla’s market dominance. As the company continues to face stiff competition from other brands, it remains to be seen how it will navigate these challenges and maintain its position in the market.
Tesla holds a momentum rating of 92.03% and a quality rating of 95.35%, according to Benzinga's Proprietary Edge Rankings. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.
The shares of Tesla gained over 23% during the past month, whereas on a year-to-date basis, it plunged 24.2%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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