Tesla’s market share in Europe dropped to 2.8% in June, down from 3.4% a year ago, marking its sixth consecutive monthly decline, according to data from the European Automobile Manufacturers Association (ACEA).
New Tesla registrations fell nearly 23% year-over-year, totaling 34,781 vehicles across the EU, UK, and EFTA states.
Analysts point to rising competition from Chinese automakers like BYD and Xpeng, growing consumer backlash against CEO Elon Musk’s political affiliations, and cooling demand for the updated Model Y.
Tesla revenues fell 12% over the last year, the biggest YoY decline in sales since 2012. $TSLAhttps://t.co/l5IYmkeySJ pic.twitter.com/HdjlfPxDfu
— Charlie Bilello (@charliebilello) July 23, 2025
Industry-wide, European car sales dropped 5.1%, with Volkswagen, Stellantis, Renault, and Hyundai all reporting losses.
Tesla faces broader headwinds, including U.S. tariff exposure, diminished tax credits, and a projected dip in regulatory credit sales.
“Musk has hinted at rough quarters ahead. Tesla may soon become a niche player unless it reclaims its innovation edge,” said Ben Nelmes of New AutoMotive.
