Tesla's European Sales Slump Continues Into August

Authored by Tom Ozimek via The Epoch Times,

Tesla’s sales slump in Europe extended into August, with sharp declines in key markets underscoring the U.S. electric vehicle (EV) maker’s struggles against rising Chinese competition and a consumer backlash against CEO Elon Musk.

Fresh data from French car industry group Plateforme automobile show Tesla registrations down by 47.3 percent year-over-year in August, while the overall French passenger car market rose by 2.2 percent to 87,850 vehicles.

Over the first eight months of 2025, French new-car registrations were down by 7.1 percent, although Tesla’s 39.4 percent drop far outpaced the market.

The picture was even bleaker across the Nordic countries. In Sweden, Tesla registrations plunged by 84.4 percent, according to industry association Mobility Sweden, while overall sales climbed by 6 percent. Denmark saw Tesla down by 42 percent. The Netherlands registered a 50 percent slide.

The only bright spots were Norway and Spain, although even there, Tesla lagged behind Chinese rival BYD. In Norway, where nearly all new cars sold are electric, Tesla gained 21.3 percent in August. But BYD’s sales soared by 218 percent, cementing its position as the fastest-growing EV brand in Scandinavia.

In Spain, Tesla’s sales jumped by 161 percent to 1,435 vehicles, in part because of generous subsidies. However, BYD outsold Tesla with 1,827 vehicles, a 400 percent increase. Year-to-date, BYD sales in Spain surged by 675 percent to 14,181 units. Tesla saw a more modest 11.6 percent rise to 9,303. Some analysts cautioned that Tesla’s August spike may have been inflated by the timing of shipments. Andy Leyland, co-founder of supply chain specialist SC Insights, said that when quarterly numbers that run through the end of September are published, a clearer picture of Tesla sales will emerge.

Broader Slide

Tesla’s August weakness in some key European markets followed steep declines in July in Europe’s two largest auto markets. The company’s UK sales fell by nearly 60 percent to 987 vehicles, while German registrations fell by 55 percent to 1,110, according to national industry bodies. For the first seven months of 2025, Tesla’s German sales were down by almost 58 percent to 10,000 units.

In the same period, BYD’s UK sales increased nearly fourfold to 3,184, and German sales jumped almost fivefold to 1,126.

Data from the European Automobile Manufacturers’ Association show that Tesla has now lost market share in Europe for seven consecutive months, with registrations down by 42.4 percent year-over-year in July.

Analysts say Tesla’s problems in Europe reflect both market dynamics and brand perception. The company has not introduced a new mass-market model since the Model Y in 2020, while competitors have flooded the market with fresh offerings.

“One reason we are continuing to see disappointing Tesla volumes can partially be attributed to a more competitive market environment,” said Matthias Schmidt of Schmidt Automotive Research.

Tesla executives have previously expressed the view that declining sales reflected a production switch to the revamped Model Y, which was Europe’s bestselling car in 2023. Deliveries began in June, but the model has struggled: August sales of the Model Y fell by 46.5 percent in Denmark and by 87 percent in Sweden.

Tesla’s slump in Europe comes on the heels of weak quarterly results. The company reported a 12 percent year‑over‑year drop in total revenue to $22.5 billion, its steepest decline in a decade, and a 42 percent decline in operating income to $923 million.

Musk told investors on an earnings call that Tesla may face “a few rough quarters” amid shifting tariffs, expiring EV tax credits in the United States, and evolving regulatory frameworks for autonomous driving.