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Tesla sales collapse continues in Europe’s top EV markets

September 3, 2025
Tesla sales collapse continues in Europe’s top EV markets

(Bloomberg/Craig Trudell) — Tesla Inc.’s sales slump is dragging on across almost all of Europe’s biggest electric vehicle markets, costing the company significant share in countries seeing stronger EV demand.

New Tesla vehicle registrations dropped 39% last month in Germany and plunged 56% through the first eight months of the year, the Federal Motor Transport Authority said Wednesday. The Elon Musk-led carmaker also posted steep August sales declines in France, Belgium, Denmark and Sweden.

Norway has been the exception, with registrations rising 21% last month and 26% year-to-date.

Tesla’s worldwide vehicle deliveries fell 13% in the first half of the year, putting the company on course for its second consecutive annual decline. While the carmaker is expected to get a boost this quarter from US consumers accelerating EV purchases before federal tax credits expire, that upside could be capped by weakness in both Europe and China, where factory shipments continue to drop.

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Musk and other top executives blamed Tesla’s early-year sales shortcomings on transitioning the Model Y — its top-selling vehicle — to a new design, which temporarily disrupted production.

But roughly six months since the company started delivering the new Model Y in Europe, the vehicle is struggling in several key markets. Registrations plummeted 87% in Sweden and 47% in Denmark last month.

In Germany, battery-electric vehicle registrations soared 46% industrywide in August, continuing a trend of strong EV sales even as Tesla struggles. Across all of Europe, BEVs were up 26% during the first seven months of the year, even as Tesla sales fell 40%.

(Updates with Model Y background starting in the fifth paragraph.)

More stories like this are available on bloomberg.com

©2025 Bloomberg L.P.

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