Tesla’s sales in Europe are continuing to decline sharply in the second quarter of 2025, despite the availability of the new Model Y. This downward trend has been ongoing for the past few years, with a noticeable drop in sales in 2024 compared to the previous year, despite increased production at the Gigafactory Berlin.
In the first quarter of 2025, Tesla experienced a 37% decline in sales in Europe compared to the same period in 2024. Shareholders initially attributed this decline to the Model Y changeover, as the automaker made updates to the design and features of its best-selling car. Production delays were also cited as a factor impacting deliveries during this time.
While Tesla claimed that production had returned to normal in April, sales in key European markets continued to plummet. In countries where daily car registration data is available, Tesla’s sales are down by almost 50% compared to the same period in 2024. Despite the introduction of the new Model Y, sales have not shown signs of improvement.
Monthly sales figures from other European countries paint a similar picture of declining sales for Tesla. In France, deliveries were down by 59% year-over-year, while Denmark saw a 67% decrease in April compared to the previous year. Portugal also reported a 47% drop in deliveries for the same period.
The decline in Tesla’s sales in Europe coincides with a surge in battery electric vehicle (BEV) sales from competitors in the region. This shift in market dynamics is concerning for Tesla, especially as it continues to lose market share in a rapidly growing market.
While some shareholders initially attributed the decline to the Model Y changeover, it is becoming increasingly clear that other factors are at play. Despite the availability of the new Model Y, Tesla’s sales have not shown signs of recovery. The introduction of the RWD versions next month may provide a slight boost in volume, but competition in the market remains fierce.
Overall, Tesla’s struggles in Europe highlight the challenges it faces in maintaining its position in the market. The dislike for the company’s CEO among consumers is also seen as a contributing factor to its declining sales in the region.
