The electric vehicle landscape is witnessing a considerable power shift as BMW surpasses Tesla in European sales for the first time in February 2025. With 19,000 battery electric vehicles delivered across European markets, BMW outperformed Tesla’s 16,000 units, highlighting a remarkable moment in the ongoing competition between traditional automakers and EV disruptors. Tesla’s European performance represents a concerning 44% year-over-year decline, resulting in their market share dropping to a five-year low of 9.6%.
The BMW i4, particularly in the U.S. market, has emerged as a formidable challenger with sales increasing 57% in Q1 2025. This performance contributed considerably to BMW’s overall 26.4% BEV growth in America, where the company delivered 13,585 electric vehicles. Meanwhile, Tesla’s grip on U.S. market share continues to weaken, falling to 49% in 2024 from a dominant 62% in 2022. Analysts project this could dip below 40% by the end of 2025.
BMW’s success stems largely from its diversified approach, deploying ten distinct BEV models across various segments. Despite BMW’s strong showing, Tesla Model Y continues to lead the overall EV sales charts with 71,000 units sold, though this represents a decline from Q1 2024. The strategy of leveraging existing dealer networks while gradually expanding their electric portfolio appears to be paying dividends. This approach aligns with the mass-market adoption trend that saw a 58% increase in 2024 across the industry.
I’ve observed that BMW’s methodical expansion contrasts sharply with Tesla’s reliance on direct sales and its aging model lineup. According to JATO Dynamics, BMW’s electric car sales grew by 20% in Q1 2025, further solidifying their competitive position against Tesla.
The broader European market shows encouraging signs for electrification, with BEVs accounting for 15.4% of all car registrations in February 2025, up from 11.5% the previous year. Volkswagen Group leads the region with 20,000 BEV registrations, representing an astounding 180% year-over-year growth. Their ID.4 model outsold BMW’s i4 with 7,663 units compared to 7,125.
Tesla’s challenges extend beyond Europe, with Canadian sales dropping 44% while BMW grew 8% in the same market. Despite these shifts, Tesla’s Model Y remains Europe’s bestselling electric vehicle, though its dominance appears increasingly precarious as legacy manufacturers accelerate their electric offerings with compelling alternatives that leverage their established production expertise and dealer relationships.
