Tesla Sales in Europe Continue to Fall
Tesla sales in Europe (EU countries, the UK, and the European Free Trade Association) continue to show negative dynamics. In May 2025, they fell by 27.9% compared to the same period last year. This is the fifth consecutive month that the company has registered a decline in sales in the region.
Although the decline in May was less significant than at the beginning of the year (sales fell by 45% in January), the overall trend remains disappointing. The updated version of the Model Y, introduced in the spring, somewhat slowed the decline but was unable to stop it. For the first five months of 2025, Tesla sales in Europe decreased by 37.1%.
Market Context
Interestingly, the overall electric vehicle market in Europe continues to grow. In May, electric car sales increased by 27.2%, which almost exactly matches Tesla’s percentage decline. The market share of electric vehicles was 15.4% compared to 12.5% a year earlier.
Among other brands, Mini (+29.1%), Alfa Romeo (+21.5%), and Cupra (+32.4%) demonstrated positive dynamics. However, Seat, which belongs to the same group as Cupra, recorded a 25.4% drop in sales.
ACEA data indicates that hybrid vehicles remain the most popular type of transport in Europe with a share of 34.1%, while the share of gasoline cars has shrunk to 28.5%. Plug-in hybrids are showing rapid growth (+46.1%), although their share remains relatively small (9.4%).
Tesla’s performance contrasts with the overall growth trend of electric vehicles, which may indicate a shift in the preferences of European buyers or tougher competition from local and Asian manufacturers. The success of the Chinese SAIC Motor, which increased sales by 22.5%, is particularly impressive, demonstrating that the European market is becoming increasingly open to new players.