Tesla’s crown slips, new EV king emerges: Beginning of the end for Musk?

Is it time for Elon Musk to make Tesla great again?

Now, there’s a new electric champ in town. Fresh data suggests that Tesla’s European sales have hit a major speed bump, plunging 45 per cent in February 2025 — its lowest market share in five years. 

Meanwhile, other EV brands are revving up, and one in particular is leaving the competition in the dust.

While Tesla stalls, Volkswagen (VW) has taken pole position in the European EV market, boasting a staggering 180 per cent spike in battery electric vehicle (BEV) sales in February. 

That’s nearly 20,000 cars sold in just one month, edging out both Tesla and other rivals like BMW and Mini, which sold a combined 19,000 BEVs.

The one key issue: Tesla’s reputation as a tech leader is wearing thin.

Musk’s grand promises of full self-driving AI have yet to materialise, and his insistence on a vision-only approach has left Tesla’s autonomous systems struggling with unexpected scenarios.

As the hype fades, customers are noticing.

Stock market gurus also point to other factors behind Tesla’s struggles. 

The brand’s current lineup is getting older, with buyers holding out for the upcoming Model Y update. 

Then there’s the Elon factor — Tesla’s CEO has been stirring up political controversy, and some consumers are hitting the brakes on their Tesla purchases as a result.

Chinese EV brands are quietly dominating the European market, too.

BYD, Xpeng, and Leapmotor are all accelerating fast, with BYD’s sales skyrocketing by 94 per cent in February, totaling over 4,000 units sold. 

Meanwhile, Polestar isn’t far behind, boasting an 84 per cent increase in sales. These brands are proving they’re not just up-and-comers — they’re serious contenders.

Tesla is banking on its updated Model Y to recharge sales. But the price difference is a huge downside. With the Launch Edition priced at £60,990 in the UK and $52,490 in the US, many buyers are waiting for more affordable versions, set to arrive later this year.

Tesla’s pricing and discount strategy has historically led to sales fluctuations: the real test will come when the full Model Y lineup hits the market. 

But if sales remain sluggish, it might be time for Tesla to rethink its approach.

For years, Tesla has been the undisputed EV leader; now, the competition is shifting into high gear. Tesla perceived tech leadership, especially with AI, is wearing off. It shares have plunged about 50 per cent since December 2025.

VW is proving that legacy automakers still have plenty of fight, while Chinese brands like BYD are showing that affordable, high-quality EVs are the future. 

With public sentiment shifting, Tesla’s dominance is being challenged like never before.

It remains to be seen whether or not Tesla could hit the pedal and reclaim its top spot, or is this the beginning of the end for Musk's EV maker?