Tesla fell short of several other competitors in the all-important European electric vehicle market.
Sales of Tesla vehicles have taken a major hit in Europe and the United States, putting pressure on Elon Musk’s electric vehicle brand as rivals continue to surge ahead in critical markets.
Data from the European Automobile Manufacturers Association reveal that Tesla’s July 2025 sales dropped sharply, while Chinese and U.S. automakers made significant gains.Why It Matters
Tesla’s latest performance marks the company’s seventh consecutive monthly decline in Europe, a key region in the global electric vehicle race. Despite rising overall sales of battery-electric vehicles, Tesla’s numbers moved in the opposite direction, signaling deeper operational and reputational challenges.What To Know
According to ACEA, battery-electric vehicles accounted for 15.6 percent of all new European Union car registrations through July 2025, up from 12.5 percent the year prior.
But Tesla’s performance lagged behind this growth, putting it at risk of ceding long-term market share to aggressive rivals like BYD, which is expanding rapidly with competitive pricing and new models across Europe.
