Tesla’s (TSLA) troubles in Europe are worsening.
Per the European Automobile Manufacturers’ Association (ACEA), Tesla EV registrations (a proxy for sales) in Europe fell to just 8,837 units in July, a 40.2% drop compared to a year ago. Meanwhile, total EV registrations in the region, which includes the UK and the European Free Trade Association (EFTA), rose 33.6% in July, with overall registrations regardless of powertrain up 5.9%.
July’s total marks the seventh straight month of declining Tesla sales in the European region. July’s total was worse than the drop seen in June, when sales dropped 22.9% year over year to 34,781 units.
Tesla stock was down over 2% in midday trade.
Tesla’s sales hangover rolled on in certain key territories in Europe, as the introduction of the revamped Model Y wasn’t enough to blunt the effect of rising competition and CEO Elon Musk’s deep unpopularity.
Registration data, a proxy for sales, was lower for key regions: France (down 27% to 1,307 units), the Netherlands (down 62% to 443), Denmark (down 52% to 336), and Sweden (down 86% to 163). In particular, France and the Nordic countries are major sales territories for Tesla. The sales data comes from national auto sources and was first reported by Reuters.
But July’s weakness overall comes on the back of a rough 2025 thus far. In the first half of the year, Tesla sales dropped 33% to just 110,000 units, again per the ACEA.
Read more: How to avoid the sticker shock on Tesla car insurance
Musk warned after Q2 earnings that Tesla was in for a “few rough quarters” as the company delayed the launch of its cheaper EVs until the federal EV tax credits expired in the US.
But Musk’s warning doesn’t mention his reputational hit stemming from his political involvement in the Trump administration, the rise of more competition, and consumer preferences for vehicles like hybrids that have Tesla and the EV industry as a whole worried.
In terms of competition, China’s BYD (BYDDY), which sells both full EVs and hybrids, saw registrations surge 225% in July to 13,503, easily topping Tesla. Volkswagen Group, which has seen its EVs embraced in Europe to Tesla’s detriment, saw registrations jump 11.6% in Europe. BMW notched an 11.6% gain, with its Mini brand popping 41%.
For Tesla, in particular, weakness in key regions such as Europe has been an ongoing issue. The company also saw sales dip in China, down 8.4% from a year ago.
Sales in the US could be a bright spot for the company. Tesla does not report monthly sales, but reports suggest US wait times for Tesla EVs, such as the new Model Y, are growing, with the theory being buyers are pulling forward EV sales ahead of the expiration of the $7,500 EV tax credit on Sept. 30.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
