Skoda surpasses Tesla in Europe as electric car buyers turn to cheaper alternatives
Tesla was phased out in the European electric vehicle (EV) market, with Skoda selling to the U.S. giants in May surpassing consumer demand for more affordable alternatives and strong opposition to Elon Musk.
According to market researchers at Dataforce, the Czech automaker — long as the butt of a car joke but now a serious contender owned by Volkswagen — sold 14,920 electric cars in Europe last month, eclipsing Tesla’s 14,055.
Skoda’s success was driven mostly by strong demand for the new electric Elroq SUV, which starts at £31,000, accounting for 9,250 of those sales.
Tesla’s downturn year fell 28%, marking the fifth month of decline in sales in Europe. Industry analysts say some European buyers have been alienated by the increasing protests over Musk’s political alliance with President Trump.
Tesla’s decline is in stark contrast to the broader EV market, which soared 25% in May and the EU’s battery-electric vehicle registration rate reached 142,776, data from the European Association of Automobile Manufacturers. Plug-in hybrid sales also soared, jumping nearly 47% to 87,301 units.
Total sales of Volkswagen Group, which owns Skoda, rose 3.4%, while BMW registrations rose 5.6%.
Germany maintains its position as the EU’s largest electric vehicle market, with new battery electric vehicles in May at 43,060 – a 44.9% increase last year. By comparison, France’s EV registration fell by 19%, to 19,414.
Chinese automakers continue to move forward in the European market. SAIC Motor’s sales rose to 18,716 units in May, up from 13,562 units last year, with a market share of 2%. Competitor Byd also made a profit, recording 3,025 European sales this month, underperforming for the second straight month, according to the Automobile Manufacturers and Traders Association.
However, Bied is reportedly facing his own challenges. Reuters reported that the company has backed production and canceled night shifts at some Chinese factories due to excessive inventory, reducing production by at least one third.
Hybrid vehicles continue to dominate the EU market, accounting for 35.1% of the share of the year in the first five months of the year. Gasoline vehicles once dominated, falling to 28.6%, down sharply from 35.6% last year.
Tesla’s troubles were reflected in Wall Street, with its shares down 4.5% to $325.13 in Friday’s lunchtime trading.
As European consumers tighten their belts and seek value in the electric car market, traditional automakers like Skoda (who was ridiculed, now up) are taking advantage of the shift. For Tesla, long regarded as the EV leader, Europe’s message is clear: race is far from over.
