Europe isn’t Tesla’s largest market, but the carmaker still sells a significant amount of vehicles in the region.
The European EV market is much more mature than the U.S. market.
Battery-electric vehicles made up 15.6% of all auto sales in the region in the first half of 2025, according to the ACEA. That was a big improvement from the 12.5% market share they held in the first half of 2024.
Tesla 2024 deliveries by region:
- China: 662,588
- U.S.: 617,618
- Europe: 372,434
- Canada: 46,314
- Rest of world: 135,272
Source: Troy Teslike on X (formerly Twitter)
Meanwhile, the U.S. BEV market share was 7.4% in Q2, according to CarEdge.
So Europe is an important market for Tesla, but the company has had a rough ride on the continent all year.
It began in January, when the European Automobile Manufacturers’ Association (ACEA) reported that Tesla registrations in the EU, Iceland, Liechtenstein, Norway, Switzerland, and the UK declined by 45% year over year in January.
By July, sales had declined 40% across the region; meanwhile, Chinese rival BYD was gaining market share.
Tesla downturn continues in Germany, UK
Tesla’s European downturn continued in October, as new data from Germany and the UK crystallized the company’s falling popularity in the region.
Tesla’s UK car sales were cut in half year over year in October, according to data from New AutoMotive, which showed 495 new UK registrations in the month. Last year, the region registered 1,013 vehicles in the month.
Related: Tesla German Gigafactory defies odds (and reality) with latest move
Tesla’s October was even worse in Germany, where the company sold just 750 vehicles. A year ago, it sold 1,607 cars in Germany, according to data from the country’s federal transport agency, KBA.
Adding insult to injury, October was the month Tesla introduced its new, lower-cost “Standard” Model Y and Model 3 vehicles in Europe.
The hope was that the lower-priced models would help goose sales.
Tesla to expand German Gigafactory production, despite Europe struggles
Despite the reality of what’s happening in Europe, Tesla sees the falling sales as an opportunity for the company.
In September, Andre Thierig, manager of the Tesla gigafactory located in Gruenheide, outside Berlin, Germany, told reporters that the company plans to increase production due to strong sales.
“We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards,” Thierig told Germany’s DPA news agency, according to Reuters (subscription required).
Tesla’s German Gigafactory ships its vehicles to 30 different countries, including some outside of Europe.
Tesla began producing right-hand-drive cars at the German plant in 2024, in anticipation of bringing them to the Indian market this year.
India is currently the third-largest automobile market, behind China and the U.S., according to S&P Global, and the government says it wants to boost EVs from the current 5% to 30% of the country’s automobile sector by 2030.
Since it entered the market in mid-July, Tesla has received orders for just over 600 cars through mid-September, according to Bloomberg, citing “people familiar with the matter.”
Tesla can blame multiple issues for the sales slump
As shareholders gather to vote on the company’s future on Nov. 6, the company can trace its slumping sales to a myriad of issues.
Analysts have pointed to Tesla’s aging vehicle lineup (though Tesla has promised updates for the popular Model Y later this year) and CEO Elon Musk‘s sudden foray into right-wing politics as reasons for the company’s sluggish first-quarter sales.
Musk has publicly endorsed the AfD, a German right-wing party that some view as extremist, and he was accused of doing a Nazi salute on stage.
Related: Tesla makes the right turn in Europe
Months ago, Musk seemingly acknowledged that his political activities had played a part in his company’s decline.
Tesla began to see its U.S. market share decline in 2023 amid increased competition from traditional automakers and new startups such as Rivian.
After peaking well above 50% of the U.S. EV market share in early 2023, Tesla now accounts for less than half, and it is quickly approaching the 40% mark, according to Cox Automotive data reported by Canary Media.
Musk said that any politically left-leaning buyers who abandoned the company have been replaced by people who align more closely with his own political views.
During his second-quarter earnings call, he detailed how Tesla would win back its European customers.
“It’s worth noting that we do not actually yet have approval for supervised FSD in Europe. So our sales in Europe, we think, will improve significantly once we are able to give customers the same experience that they have in the U.S.,” Musk said.
So far, it appears that European consumers are looking for more than just access to FSD to turn around Tesla sales.
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