Tesla has been knocked off its perch in the European electric vehicle (EV) market, with Skoda outselling the US giant in May amid growing consumer demand for more affordable alternatives and a backlash against Elon Musk.
According to market researchers at DataForce, the Czech carmaker — long the butt of automotive jokes but now a serious contender under Volkswagen ownership — sold 14,920 electric cars across Europe last month, eclipsing Tesla’s 14,055.
Much of Skoda’s success was fuelled by strong demand for its new all-electric Elroq SUV, which starts at £31,000 and accounted for 9,250 of those sales.
Tesla’s slump — a 28% year-on-year drop — marks the fifth consecutive month of declining European sales. Industry analysts say the fall comes amid growing protests over Musk’s political alignment with President Trump, which has alienated some European buyers.
Separate data from the European Automobile Manufacturers’ Association shows Tesla’s decline stands in stark contrast to the broader EV market, which surged 25% in May, with battery-electric vehicle registrations across the EU hitting 142,776. Plug-in hybrid sales also soared, jumping nearly 47% to 87,301 units.
Volkswagen Group, which owns Skoda, enjoyed a 3.4% rise in overall sales, while BMW registrations rose by 5.6%.
Germany maintained its position as the EU’s biggest electric car market, registering 43,060 new battery-electric vehicles in May — a 44.9% increase on last year. France, by contrast, recorded a 19% drop in EV registrations, down to 19,414.
Chinese automakers continued their advance in the European market. SAIC Motor saw sales climb to 18,716 units in May, up from 13,562 last year, giving it a 2% market share. Rival BYD also made gains, recording 3,025 European sales for the month, outperforming SAIC for a second consecutive month according to the Society of Motor Manufacturers and Traders.
However, BYD is reportedly facing its own challenges. Reuters reports the company has scaled back production and cancelled night shifts at some Chinese factories due to excess inventory, cutting output by at least a third.
Hybrid-electric vehicles continue to dominate the EU market, taking a 35.1% share in the first five months of the year. Petrol vehicles, once dominant, dropped to 28.6%, down sharply from 35.6% last year.
Tesla’s troubles were reflected on Wall Street, where its shares fell 4.5% to $325.13 in lunchtime trading on Friday.
As European consumers tighten their belts and seek value in the EV market, legacy carmakers like Skoda — once mocked, now ascendant — are capitalising on the shift. For Tesla, long seen as the EV frontrunner, the message from Europe is clear: the race is far from over.
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Skoda overtakes Tesla in Europe as EV buyers turn to cheaper alternatives