Tesla Faces 47% EU Sales Drop in August Despite Growth

In August 2025, Tesla recorded a 47.3% year-on-year drop in car registrations across key EU markets, contributing to a broader 44% decline over the first seven months of the year. Newly released data shows Tesla registrations fell 47.3% in France, 84% in Sweden, 42% in Denmark, 50% in the Netherlands, and 4.4% in Italy. This steep decline contrasts with overall market growth, including a 2.2% increase in France’s auto sector and a 6% rise in Sweden’s.

While Norway, Spain, and Portugal reported gains for Tesla, the increases were modest compared to Chinese automaker BYD. In Norway, Tesla registrations rose 21.3%, while BYD surged 218%. In Spain, Tesla’s August sales climbed 161% to 1,435 units, but BYD’s soared over 400% to 1,827 units. Year-to-date, Tesla’s Spanish sales are up 11.6%, while BYD’s have jumped 675%. In Portugal, Tesla sales grew 28.7% after seven months of declines.

Analysts cite multiple factors behind Tesla’s slump. “Disappointing Tesla volumes can partially be attributed to a more competitive market environment,” said Matthias Schmidt of Schmidt Automotive. Tesla’s aging lineup and the lack of a new mass-market model since 2020 have weakened its position. In July, Elon Musk insisted “there are no issues with Tesla volumes on the European market,” despite its share dropping from 2.5% in 2024 to 1.7% in 1H25.

Consumer backlash over Musk’s political activity, including support for Donald Trump and far-right European parties, has also hurt sales. Electrifying.com reported that over half of surveyed potential buyers cited Musk as a reason for avoiding the brand. Aggressive price cuts in 2023 further pressured new-car sales by expanding the used EV market; used Tesla sales in the UK rose 270% in July, while the average price of a used Model Y has fallen 41% in two years.

In July alone, Tesla sold 6,600 vehicles across the EU, down from 11,465 a year earlier, despite a 39% rise in overall battery electric vehicle (BEV) sales. BYD continues to gain ground, reaching a 1.1% share of all car sales in August, surpassing Tesla’s 0.7%. BYD’s growth is driven by its wider lineup and aggressive pricing, while Tesla’s aging models and delays in launching updates—such as a revamped Model Y—have limited competitiveness. Temporary factory shutdowns earlier this year to retool for the new Model Y further constrained availability.

Musk’s political statements have sparked protests in cities like Milan and London. His support for far-right parties, criticism of UK leadership, and warnings to German voters have reportedly alienated some customers. Meanwhile, Tesla is still awaiting EU regulatory approval for its Full Self-Driving (FSD) software, a feature Musk predicted would be cleared by March 2025. Continued delays have eroded a potential competitive edge. Tesla now hopes to recover ground with the launch of lower-cost models in the final quarter.