Week 45/24 Recap: Trump's Impact on Tesla's Stock, Complimentary Electricity for Model Y, New Audi Brand Launching in China
Tesla's Sales Decline in Europe and Germany
Tesla's electric vehicle (EV) sales in Europe are currently experiencing a significant downturn, with registrations dropping sharply compared to previous years. The decline is particularly pronounced in Germany, one of Tesla's historically strong markets.
As of July 2025, Tesla’s sales in Europe dropped about 34.3% year-to-date, continuing a downward trend from a 10% drop in 2024. In Germany, annual sales potentially fell from over 60,000 vehicles a few years ago to possibly under 20,000 in 2025. Data from July 2025 shows Tesla registrations down over 41% across Europe, and in the UK alone, sales fell nearly 60% compared to the previous year.
Tesla’s market share in Europe (EU, UK, and EFTA) has shrunk to 2.8% in June 2025 from 3.4% a year earlier. This shrinkage reflects broader competitive pressures from Chinese manufacturers like BYD and strong local automakers. BYD, in particular, is gaining significant ground and surpassing Tesla in some regional markets.
The decline in Tesla’s European sales is attributed to multiple factors: intensified competition from new EV entrants (especially Chinese brands), an aging Tesla model lineup, and some negative public perception centered around CEO Elon Musk. The company has not publicly reversed these trends yet and appears to be facing significant challenges maintaining market share, especially in key markets like Germany and France.
Tesla's Response and Future Plans
In response to the weak sales, Tesla introduced a new incentive for its Model Y in Europe: a year of free Supercharger charging for customers who take delivery of the electric vehicle by the end of the year. Additionally, Tesla is offering 0% interest on credit in Germany, a €6,000 discount on the Model Y, and a €500 savings for all models with a referral code.
CEO Musk also confirmed that a $25,000 Tesla will only be available as a robotaxi, but other "affordable" electric vehicles are planned for the first half of 2025.
Industry Impact and Future Outlook
Other electric vehicle stocks showed weakness, with observers attributing this to the new president-elect's skepticism towards human-made climate change and potential end to state subsidies for electric vehicles. The regulatory environment, however, is likely to become more favorable due to the election results.
In the U.S., Tesla, with its dominant position on the market, would be less affected by the potential end of state subsidies than established competitors or other electric vehicle specialists.
The news about Tesla's sales decline in Europe and Germany is a significant development in the EV industry. The company's response and future plans will be closely watched as the market continues to evolve and become increasingly competitive.
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- The decline in Tesla's European sales has not only affected the lifestyle segment, with a decrease in registrations of Tesla's EVs, but it also raises questions about the company's financial stability as it experiences a downturn in one of its historically strong markets, Germany.
- In the realm of technology and sports, Tesla's response to the sales decline includes offering incentives such as free Supercharger charging and discounts on its models, signaling a shift in its marketing strategy to maintain market share, particularly in Europe and Germany.
