- Volkswagen beat Tesla in European EV sales across the first three months of 2025, data shows.
- Registrations for VW EVs are up more than 150%, while Tesla lost huge ground.
- However, the Model Y and Model 3 remain Europe's top two most-registered EVs.
Tesla has lost its crown as the top EV seller in Europe.
Volkswagen's EVs outsold Elon Musk's car company across the first three months of the year, according to data from JATO Dynamics, an automotive analysis firm.
65,679 Volkswagen battery EVs were registered in the first quarter, compared to 53,237 Teslas.
The German carmaker saw its registrations more than double year-over-year, rising 157% since the first quarter of 2024.
Tesla registrations dropped 38% over the same period. According to JATO's data, this was the biggest decline among the top 30 most-registered brands.
It's a bad time for Tesla to be losing ground. JATO found that the year's first three months were the strongest quarter for battery EVs on record. Battery EVs accounted for 16.9% of all total car registrations in March — an increase of 2.7 percentage points year-over-year.
The UK was the main driver of growth, with volumes up by 13%.
Despite the company losing the top spot overall, Tesla's Model Y and Model 3 remain the top two most-registered battery EVs.
In March, registrations of the former dropped 43%, but the Model 3 increased 1%. The Volkswagen ID.4 ranked third but remained 2,000 units short of the Model 3 across the quarter.
"As the brand continues to deal with a host of PR issues in addition to the changeover of the Model Y, Tesla is now relying on the Model 3 to offset its loses," said Felipe Munoz, a global analyst at JATO Dynamics.
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"Despite the controversy surrounding the brand's CEO and the limited availability of the new Model Y, Tesla continues to perform well," he added.
Tesla reported first-quarter earnings on Tuesday, with revenue down 9% while net income plunged 64%, well below analyst expectations.
However, the stock still rose, as Musk said he would spend less time working with the government and focus more on his car company.
