Tesla Inc’s sales in Europe have again declined, underscoring its ongoing struggle there while the overall EV market expands rapidly. Data from ACEA and industry analysts shows that Tesla registrations have declined sharply despite strong growth across Europe’s broader EV market. (European Automobile Manufacturers’ Association [ACEA]).
Tesla sales plunged 49% year-on-year in April 2025 across Europe, UK, and European Free Trade Association countries from 14,228 in April 2024, according to both AP News and Reuters reports.
That marked four consecutive months of declines for Tesla in Europe, and even within May alone its new-car registrations fell 27.9 % year-on-year compared with May of the prior year, per Reuters +1 (while total European EV sales rose 27 %) — underscoring Tesla’s underperformance. [ Reuters 1 +1
The Tesla market slump can be found across European markets: German registrations dropped more than 33% in May; registrations in the UK fell 48%. Reuters
In Sweden and Denmark, registrations plunged even further: 64.4 and 61.6 respectively in June (Carscoops).
Tesla’s European market share has more than halved over the last year, from approximately 1.3% to approximately 0.7% today. Just Auto has investigated why this phenomenon may be happening.
Tesla appears to be experiencing a sharp drop in Europe due to various factors:
Chinese automakers like BYD and other manufacturers from China are rapidly expanding their presence in Europe. BYD in particular tripled its sales compared to July last year – something BYD achieved thanks to Euronews’ support.
Legacy European automakers are intensifying their EV efforts, narrowing Tesla’s lead.
Analysts note Tesla’s product-line concerns haven’t kept pace with rivals’. While an updated Model Y was announced recently, its failure to reverse this slide remains evident. (Reuters).
Brand and sentiment issues: There appears to have been some buyers turning away from Tesla due to negative perceptions about its CEO’s public profile and politics, particularly in Germany. Business Insider’s estimates indicate this trend as the cause.
Regardless of Tesla’s decline, Europe’s EV market remains robust. Battery electric vehicles continue to increase their share of new-car registrations; for instance in May BEVs, PHEVs, and HEVs accounted for 59% of passenger car registrations – an increase from 49% a year ago (Reuters).
Tesla’s declining sales are indicative of larger issues that go beyond seasonal downturns.
What lies ahead for Tesla in Europe?
Tesla faces an important moment in Europe. To regain momentum and increase market share, Tesla must address both product and brand issues: introduce highly competitive new models that meet European tastes and price points while rebuilding consumer trust in key markets. Without such measures in place, analysts believe Tesla risks becoming irrelevant in an ever-increasingly EV-competing region.
Carscoops mes Tesla’s recent sales declines raise vital questions regarding its strategy and brand positioning in Europe amid growing EV demand, as well as how to respond to intensifying competition.