Registrations plunge over 40% in July as rivals gain ground and Musk faces reputational challenges
Tesla’s (TSLA) struggles in Europe are showing no signs of easing. According to the European Automobile Manufacturers’ Association (ACEA), registrations of Tesla electric vehicles — a common proxy for sales — dropped 40.2% year over year in July to just 8,837 units. The decline stands in sharp contrast to the broader European EV market, where total registrations surged 33.6%, and overall auto registrations rose nearly 6%.
July marked the seventh consecutive month of declining Tesla sales in Europe and represented an even steeper fall than June’s 22.9% drop. The weakness was particularly pronounced in key markets: France (-27%), the Netherlands (-62%), Denmark (-52%), and Sweden (-86%). These territories have historically been important for Tesla, making the downturn especially concerning.
The first half of 2025 has been rough overall, with Tesla’s European sales down 33% to 110,000 units. CEO Elon Musk recently acknowledged the company faces “a few rough quarters,” as Tesla delays the launch of its lower-cost EVs until U.S. federal tax credits expire. Yet analysts point out other challenges Musk has not addressed, including his political controversies, rising consumer preference for hybrids, and intensifying competition.
Chinese automaker BYD has surged ahead, registering 13,503 units in July — a 225% jump year over year — outpacing Tesla. Meanwhile, Volkswagen Group and BMW both recorded double-digit gains, with Mini brand registrations soaring 41%.
Tesla’s U.S. market may offer a temporary reprieve. While the company doesn’t report monthly sales, industry reports suggest growing wait times for the revamped Model Y as buyers rush to take advantage of the $7,500 federal tax credit before it expires on September 30.
For now, Europe remains Tesla’s weakest link, underscoring the mounting pressure on Musk to steady the company’s global footing.
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