Elon Musk's Tesla Loses Ground In Europe — Sales Down 23% Even As EV Market Grows
Tesla's sales in Europe fell by 22.9% in June 2025, with 34,781 units sold, down from 45,087 last year, despite a 14.5% increase in overall EV sales in the region. The European automotive market saw a 5.1% decline in new car registrations. Tesla's market share dropped to 2.8%. This decline follows a trend of decreasing sales in the U.S. and a reported 12% drop in revenue for Q2. Meanwhile, BYD plans to expand into Europe with new sub-brands next year.
The European automotive market saw a 5.1% decline in new car registrations during June as the European Union saw sales slip 7.3% YoY. Tesla Inc. TSLA recorded a huge decline in sales, even as EV sales surged in the region.
What Happened: The region recorded 1,243,375 vehicles, including electric vehicles, Hybrids and ICE-powered vehicles, during June 2025, the ACEA or European Automobile Manufacturers' Association said on Wednesday.
The data suggests June 2024 saw the region record over 1,311,043 vehicles, indicating a 5.1% YoY decline. Despite overall sales going down, EV sales in the region recorded a 14.5% surge, with Germany registering over 47,163 EV units.
However, Tesla continued to experience sluggish sales as the EV giant recorded a 22.9% decline, registering 34,781 sales, down from last year's 45,087 sales. Tesla's market share in June slipped to 2.8% in the region.
Why It Matters: The news comes as shares of top European automakers rallied in the hopes of a trade deal breakthrough after President Donald Trump announced a deal with Japan with 15% tariffs imposed on imports into the U.S.
Elsewhere, Tesla's sales decline in June follows an ongoing trend that saw the automaker's sales fall in the U.S., coinciding with the company reporting a 12% drop in revenue for the second quarter during its earnings call on Wednesday.
On the other hand, Tesla's Chinese rival BYD Co. Ltd. BYDDY BYDDF is gearing up to launch its sub-brands Denza and luxury-focused Yangwang into the European region sometime next year as the company's global expansion push continues.
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