Tesla's European Sales Plummet 33% in 2025 as Competitors Gain Ground
Tesla's European sales have plummeted in 2025, with a significant 33% drop across Europe and a steeper 43% decrease in the EU alone for the first eight months. The company's market share has dwindled to 1.5%, while competitors like BYD are making aggressive gains. Meanwhile, US President Donald Trump's abolition of the electric vehicle tax credit may further impact Tesla's sales.
Tesla's sales initially surged in the last quarter, with a 7.4% year-on-year increase to 497,099 vehicles, driven by buyers rushing to claim the expiring $7,500 US tax credit. However, analysts had anticipated a sales decline due to increasing competition and shifting consumer preferences towards hybrid and internal combustion engine vehicles. Elon Musk has warned of tough quarters ahead.
In Europe, Tesla's sales have continued to decline, with a 36.6% year-on-year drop in EU new registrations in August. The company's EU market share now stands at a mere 1.2%. Musk has taken personal oversight of European production and sales following the departure of his long-time confidant Omead Afshar.
Tesla's European sales crisis, coupled with the loss of the US tax credit, presents significant challenges for the company. With competitors like BYD gaining ground and consumers favoring other vehicle types, Tesla must navigate these headwinds to maintain its market position.
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