Tesla Posts Sharp Decline in EU Sales
(MENAFN) Tesla experienced a sharp 43.7% year-over-year decline in European Union sales during the first half of 2025, according to data published Thursday by the European Automobile Manufacturers' Association (ACEA).
The U.S.-based electric vehicle giant, led by billionaire Elon Musk, sold 70,655 vehicles across the EU from January through June. That’s a steep drop from the 125,606 units it sold during the same timeframe in 2024, the ACEA report confirmed.
Tesla’s market presence in the EU shrank as a result, with its share falling to 1.3% from 2.2% year-over-year for the six-month period.
Widening the scope to include the European Free Trade Association and the UK, Tesla’s total regional sales slumped 33.2% compared to the first half of 2024, dropping to 109,879 vehicles.
June proved particularly challenging: Tesla’s EU deliveries fell by 39.5% compared to the same month last year, totaling just 20,349 units. Market share in the bloc also dipped to 2% in June 2025, down from 3.1% a year earlier.
While Tesla stumbled, the broader battery electric vehicle (BEV) market in Europe saw robust growth. BEV sales surged 24.9% to reach 1.19 million units in the first half of the year.
Chinese automakers capitalized on the shift, increasing their EV sales by 91% year-on-year during the same period, hitting 347,135 units, according to figures from JATO Dynamics. Their market share surged to 5.1%, doubling compared to the same period in 2024.
“Persistently high prices, geopolitical and economic tensions with Europe’s trading partners, and the post-pandemic market reality are behind the decline,” said Felipe Munoz, Global Analyst at JATO Dynamics. “Western Europe has lost the equivalent of more than 2.5 million units of annual sales since 2019.”
Tesla's dwindling performance in Europe has been attributed to mounting competition from fast-growing Chinese brands, alongside Elon Musk’s controversial political interventions and increasing tensions surrounding his role in European affairs.
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