Tesla’s gross sales in several major European markets continued to decline sharply in Q2 2025, despite the availability of the newly launched Model Y, which had been criticized for poor sales in the previous quarter.
In the past two years, Tesla has witnessed a decline in its European gross sales.
Despite increasing production capacity at its Gigafactory Berlin, Tesla saw a 11% decline in auto deliveries to Europe in 2024 compared to the previous year.
As the electric vehicle market’s performance continued to falter for Tesla in 2025, a stark decline was observed, further exacerbating the already challenging conditions faced in 2024.
By the end of Q1 2025, a significant decline was noted in Tesla’s European gross sales, registering a 37% decrease compared to the same quarter in the previous year.
Tesla shareholders had initially attributed the recent decline in sales primarily to the Model Y transition.
The automaker updated the design and some options of its top-selling model, the Mannequin Y, by limiting availability due to the update of manufacturing lines in the first quarter.
During its recent earnings call, Tesla cited the Model Y transition as a reason for decreased deliveries in Q1, suggesting it likely had a significant impact.
Despite this, the statement also noted that manufacturing has returned to normal levels by April, yet Tesla’s sales continued to decline in Europe.
Across five European markets that release daily automotive registration data, Tesla’s performance has declined significantly compared to the same period in 2024, with a roughly 50% drop. Moreover, despite introducing the highly anticipated Model Y, Tesla is still trailing behind its underwhelming Q1 2025 numbers?
We are now starting to receive monthly figures from various European markets.
According to reports, in April, Tesla’s deliveries in France totalled a modest 863 vehicles. The metric has plummeted by a staggering 59% since last year, with an additional decline of 24% compared to its peak in the first quarter of 2025.
Denmark saw a modest performance from the automaker in April, with just 180 vehicles delivered during the month. Sales plummeted by 67% compared to April 2024 and 59% since January 2025, when Tesla did not offer the newly launched Model Y.
Portugal saw a significant decline in Tesla deliveries, with just 239 vehicles registered in April, representing a 47% year-over-year drop and a 39% decrease compared to the first quarter’s opening month.
The release of extra knowledge from European international locations is imminent, with the comprehensive dataset set to become publicly accessible in the coming days and the full dataset scheduled for availability later this month.
In the first quarter of 2025, a significant drop in European gross sales for Tesla – amounting to a 37% decrease – was accompanied by a remarkable 24% increase in demand for battery-electric vehicles, highlighting the resilience of this segment.
Electrek’s Take
As Tesla faces intensifying competition from battery-electric vehicle (BEV) sales surges by rivals in Europe.
When a market leader experiences a sudden and significant decline in market share amidst a booming market, it’s a glaring warning sign.
Despite initial optimism among Tesla shareholders, hopes that the Model Y’s launch would spark a turnaround are waning as time goes on.
Despite the Model Y’s recent inventory availability, Tesla’s sales shouldn’t be expected to surge significantly at this time.
As we speak, you’ll be receiving a brand-new Mannequin Y directly from France.
While certainty about RWD variants arriving next month is reassuring, it’s crucial to acknowledge that Tesla still faces significant competition in the lower-end segment, particularly from Model Y.
The alarmingly low adoption rates of all-wheel drive (AWD) systems are deeply concerning.
Tesla’s presence in the European market is under threat, primarily due to widespread consumer dissatisfaction with Elon Musk as its CEO.
