Tesla Sales Hit 3-Year Low In This European Nation Despite Musk's Claims Of 'No Demand Problem'
Tesla Inc. is experiencing significant declines in deliveries, particularly in Europe, where sales in France dropped 67% year-over-year to 721 units in May, marking a three-year low. Despite Elon Musk's claims of 'no demand problem,' the company faces challenges from tariffs, macroeconomic issues, and brand damage due to political involvement. Tesla's European sales fell 49% year-over-year in April, raising concerns about second-quarter performance. The stock closed down 1.09% at $342.69, reflecting a 15% decline year-to-date in 2025.
Electric vehicle leader Tesla Inc TSLA is continuing to see large declines in deliveries in many territories around the world, with data from Europe looking particularly bad.
What Happened: Items such as tariffs and macroeconomic concerns could hurt Tesla's delivery figures in the U.S. and other parts of the world.
Europe might be the market Tesla is struggling with the most, which comes as other competitors are outperforming it. The Elon Musk-led company also suffered brand damage in 2024 and 2025 due to the CEO's political involvement in several countries’ elections.
A new report shared by Electrek said Tesla's deliveries in France were 721 units in May. This figure was down 67% year-over-year and is the lowest for the country in over three years.
The overall automotive market was down 12% year-over-year for France in May, but companies outside of Tesla saw much better results.
The report on the struggles in France comes as a recent ACEA report said Tesla's European sales were down 49% year-over-year in April.
Why It's Important: Musk insisted that Tesla has "no demand problem" and everything is going fine. Recent delivery reports for regions around the world suggest otherwise and could put second-quarter deliveries in the spotlight.
Tesla placed a portion of its weaker sales blame on the Model Y changeover. May sales for Tesla in France were lower than any month in the first quarter, when the Model Y changeover was happening. With the changeover now complete in some parts of the world, weak second-quarter data shows that this may not have been the reason for weaker demand.
While France represents only one market for Tesla, the May data is bad and could be another negative for second-quarter deliveries and financial results.
TSLA Price Action: Tesla stock closed Monday down 1.09% to $342.69 versus a 52-week trading range of $167.42 to $488.54. Tesla stock is down around 15% year-to-date in 2025.
