Tesla delivers a lower number of electric vehicles from Giga Shanghai in May, marking a 15% decrease from the same period last year.
Tesla Struggles in Global EV Market Amidst Competition and Political Backlash
Tesla's dominance in the electric vehicle (EV) market has been challenged in 2025, with the company's global EV sales share dropping significantly to around 45% of the new EV market for the first five months of the year. This decline is a stark contrast to the 80% market share Tesla held in 2019-2020 and the mid-60% range it maintained by 2023.
The U.S. EV market, in particular, has shown a slight year-over-year decline in Q2 2025, despite first-half sales setting records overall at about 607,000 vehicles. Tesla, however, is facing growing competition from other automakers like Chevrolet and Honda, which are gaining market share in the U.S.
Regarding regional specifics, China remains a key EV market globally, but the search results do not provide detailed current sales data or trends for Tesla specifically in China in 2025. Europe, too, is known for a diverse and competitive EV market, with many local and international players. However, no explicit sales or market share figures for Tesla in Europe in 2025 are mentioned in the provided data.
In Canada, the Canadian government's iZEV rebate program does not apply to Tesla due to the increased tariffs on the company's vehicles. As a result, Tesla's sales in Canada have been impacted, with May 2025 being the second-worst month in the past two years, with only February 2024 having lower sales (60,635 units).
The Canadian government's decision to exclude Tesla from the iZEV rebate program is a result of political backlash from Elon Musk's association with U.S. President Donald Trump. The increased tariffs on Tesla's vehicles have made them ineligible for the vehicle, EV charger, and battery storage rebates in most Canadian provinces and the federal government.
In an effort to boost domestic sales in China, Tesla has introduced 0% financing on the new Model Y. Despite producing over 410,000 vehicles and delivering more than 384,000 vehicles in Q2 2025 globally, Tesla's struggles are not limited to China; across Europe, its sales and market share have taken a hit due to political controversy surrounding CEO Elon Musk.
| Market | Tesla 2025 Sales/Share Insight | |---------------|----------------------------------------------------------| | Global | Tesla's EV market share dropped to 45% in early 2025; produced 410K+ vehicles & delivered 384K+ in Q2[1][4] | | China | No specific recent data in search results | | Europe | No specific recent data in search results | | Canada | The Canadian government's iZEV rebate program is not available to Tesla due to ongoing U.S. tariffs[5] |
The global EV landscape is becoming more competitive, with Tesla's share declining as others gain ground, but total EV sales continue to grow overall[1][2][3]. The Canadian government is planning to reinstate the iZEV rebate program, but Tesla will not be included as long as the U.S. tariffs on Canada continue.
- As the automotive industry evolves, the technology sector plays a crucial role in the development of electric vehicles (EVs), with many businesses, including Tesla, competing in the market.
- In most Canadian provinces and the federal government, Tesla vehicles are ineligible for rebate programs, such as the iZEV rebate, due to increased finance tariffs, impacting the company's sales.
- Amidst a diverse and competitive European EV market, the sales and market share of Tesla have been negatively affected by political controversy revolving around CEO Elon Musk.
