Tesla's sales have declined in Europe due to rising competition from European and Chinese electric vehicle (EV) brands. In Spain, Tesla's new car sales decreased by 36% in April compared to the same month in 2024, totaling 571 vehicles, according to registration data from industry group ANFAC. Over the first four months of 2025, Tesla's sales in Spain dropped by 17% compared to the previous year, while sales of electrified vehicles (including fully electric and hybrid vehicles) increased by 54%.

The increased competition is particularly notable from Chinese automakers such as BYD, MG, and Omoda, whose sales in Spain have surged by 644%, 80%, and 346% respectively, so far this year, according to ANFAC's report. Additionally, Elon Musk's involvement in far-right politics in Europe has led to protests against him and Tesla, along with vandalism at Tesla showrooms and charging stations across the U.S. and Europe.

Musk stated two weeks prior that he would reduce the time he spends with the Trump administration to focus more on managing Tesla.