Disastrous April for Tesla in France

More than ever in turmoil, Tesla faces a critical situation in a highly disrupted French car market.

It is difficult for Tesla to keep afloat in a French automotive market that continues its downward trajectory in 2025. April was marked according to AAA Data by an overall decline of 6% in new car registrations. In this bleak context, Tesla shows an alarming performance, with a spectacular 59% drop in its registrations for the month, confirming the company’s difficulties in maintaining its attractiveness in the French market.

The sales of new cars to individuals, down by 18%, reflect a general trend of disinterest in electric powertrains within this segment. The market share of electric vehicles has fallen to 18%, despite cautious growth driven by fleets. Private buyers seem to be deterred by reduced bonuses and still-high average prices. In this context, one day we will have to ask ourselves whether to stop completely a bonus that costs a fortune without certain effects on the electric transition. When we have the means to buy a car for 45,000 Euros, we can skip a 2,000 Euro discount or negotiate it directly with the dealer!

Tesla, a model questioned

Only fleets continue to electrify their fleets, with 22% of their registrations dedicated to electric vehicles, recording an impressive increase of 65%. Tactical channels, such as short-term rental sales, allow manufacturers to partly compensate for the weak demand. This trend offers opportunities for emerging brands and those expanding their electric range.

Faced with this situation, Tesla seems to struggle to compete with more competitive electric models, such as the Renault 5, which dominates sales in this segment. Tesla’s strategy, historically based on a premium perception and strong brand value, has lost both this year following Elon Musk’s political antics.

With the announced return of social leasing in September and ongoing initiatives to electrify fleets, Tesla will need to rethink its positioning to reverse this trend. Meanwhile, the booming second-hand electric market could serve as a potential growth channel for the brand in France. But first, there must be clients willing to drive a Tesla…

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