Tesla’s sales downturn is persisting across almost all of Europe’s largest electric vehicle (EV) markets, eroding significant market share in countries experiencing stronger EV demand.
New Tesla vehicle registrations fell 39 per cent in August and tumbled 56 per cent over the first eight months of 2025, the Federal Motor Transport Authority reported on Sept 3. The automaker run by billionaire Elon Musk also recorded sharp August sales drops in other European markets, including France and Belgium. Registrations plunged 87 per cent in Sweden and 47 per cent in Denmark. Norway is the outlier, with registrations up 21 per cent in August and 26 per cent year to date.
Tesla’s global vehicle deliveries dropped 13 per cent in the first half of 2025, positioning the company for its second straight annual decrease. Although the carmaker is expected to receive a lift this quarter from US buyers accelerating EV purchases ahead of federal tax credit expirations, that upside could be limited by softness in both Europe and China, where factory shipments continue to fall.
Mr Musk and other senior executives attributed Tesla’s early-year sales shortfall to transitioning the Model Y — its best-selling model — to a new design, which briefly disrupted production. Yet roughly six months after the firm began delivering the new Model Y in Europe, the model is underperforming in European markets.
In Germany, battery-EV (BEV) registrations surged 46 per cent industrywide in August, maintaining a pattern of robust EV sales even as Tesla falters. Across Europe, BEVs rose 26 per cent during the first seven months of 2025, even as Tesla sales declined 40 per cent.
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