While Elon Musk has been preoccupied with political activities, Volkswagen has seized the opportunity to dramatically expand its electric vehicle footprint across key markets. The German automaker doubled its EV sales in Europe during Q1 2025, delivering over 150,000 units—a remarkable 113% year-over-year increase.
Globally, Volkswagen shipped 216,800 EVs, representing 59% growth compared to the 136,400 units delivered in the same period last year.
Volkswagen’s global EV shipments surged 59% to 216,800 units, showcasing remarkable growth in a competitive market.
Tesla’s European performance tells a starkly different story. The American EV pioneer experienced declining sales in nearly every European market except the UK. I’ve observed that Musk’s controversial political affiliations have damaged Tesla‘s brand perception, particularly in Germany where protests specifically targeted his connections to U.S. political figures. Approximately 250 protesters gathered outside a Tesla showroom in Berlin to express their disapproval of Musk’s political ties.
The company’s decision to retool factories for the Model Y update further compounded its delivery challenges.
Volkswagen has emerged as the undisputed BEV market leader in Europe, commanding approximately 26% market share. In Germany, nearly half of all EVs sold now wear Volkswagen Group badges, primarily the ID.4, ID.5, and Audi e-tron models.
The company’s diverse portfolio, extensive dealership networks, and production capacity have proven decisive advantages in this growth phase.
Despite retaining 44% of the U.S. EV market with 135,000 units sold in Q1, Tesla’s position is increasingly vulnerable. Volkswagen’s 51% growth in U.S. EV sales demonstrates the shifting competitive landscape.
Both manufacturers face headwinds from potential U.S. trade tariffs that could increase supply chain costs. Tesla’s market dominance has steadily declined from 74.8% in 2022 to its current level as legacy automakers expand their electric offerings.
China remains challenging territory for both companies. Volkswagen’s overall deliveries dropped 7.1% due to intense local competition, while its EV sales plummeted 37%. This trend aligns with broader consumer behavior shifts in the EV market, where Chinese manufacturers like BYD are reshaping industry dynamics.
Tesla continues struggling against domestic champions like BYD.
The backlog of nearly one million orders for Volkswagen vehicles in Western Europe suggests sustained momentum. Strategic pricing, model diversification, and new entrants like the ID.7 and Audi Q6 e-tron have positioned Volkswagen for continued expansion while Tesla recalibrates amid leadership controversies and production shifts.
