Tesla sales in Europe are continuing to decline rapidly, and it appears the pain is just beginning for the automaker.
The numbers for July are coming in from Europe and Tesla registrations are down 41.6% despite EV sales surging across the old continent.
It shows that the free-fall decline in sales that we saw in the first half of 2025 is still continuing into the second half, despite Tesla falsely claiming that the issue in the first quarter was the Model Y changeover limiting supply.
In fact, the decline appears to be accelerating in most European markets.
Year-to-date (Jan-July), Tesla’s sales are down 34.3% throughout Europe:
Tesla’s sales in Europe had already declined by about 10% or 40,000 units between 2023 and 2024.
However, the decline is clearly accelerating in 2025.
While the American automaker is down 34% in the entire European market, there are large specific European markets, like Germany and France, where the decline is even steeper.
Just a few years ago, Tesla was selling more than 60,000 vehicles per year in Germany. Now, it appears that Tesla may face challenges in selling 20,000 units in the market this year.
The UK was the most significant European market where Tesla’s decline was not too steep in the first half of the year, but it has now clearly accelerated.
Tesla’s UK sales were down 60% in July 2025 compared to July 2024.
Electrek’s Take
The genuine concern for Tesla is that this is happening amid EV sales still surging in Europe.
A few years ago, Tesla was the market leader and even had a majority of EV shares in Europe. The EV market is now doing better than ever in Europe, and the biggest electric automaker is seeing a sharp decline.
This should tell you that something is really wrong at Tesla.
CEO Elon Musk seems completely unbothered as he claims to believe that Tesla’s sales will surge back up in Europe once supervised self-driving is allowed.
I’ll believe it when I see it.
I believe Tesla’s primary challenge in Europe is competition. The only market Tesla is doing OK in right now is the US, and that’s because it’s the least competitive market for electric vehicles.
In Europe, there are more EVs available from legacy automakers, and Chinese EVs are also starting to trickle in with lower tariffs than in the US.
Tesla is having difficulties competing with those, especially since more than half the population dislikes the brand due to its CEO.
It appears that there’s nothing currently stopping Tesla’s decline in Europe. It could get a lot worse before it gets better.
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