Tesla’s vehicle sales in Europe dropped significantly in May, even as overall car registrations in the region climbed on the back of robust demand for electric vehicles, according to official data released Wednesday.
New Tesla registrations across the European Union, the European Free Trade Area, and the UK totaled 13,863 units in May — a 27.9% decrease from the same month last year, data from the European Automobile Manufacturers’ Association showed.
The decline came despite a surge in sales of battery and hybrid electric vehicles. Battery electric vehicle (BEV) registrations — Tesla’s primary market segment — jumped 27.2% year-over-year to 193,493 units in May.
The strength in EV demand contributed to a 1.9% annual increase in total car registrations across Europe, reaching approximately 1.1 million vehicles. Meanwhile, sales of petrol and diesel cars continued to weaken, falling by 19.5% and 27.6% year-over-year, respectively.
Tesla faces mounting competition from both European carmakers expanding their EV portfolios and Chinese manufacturers like SAIC Motor offering more affordable models. The U.S. automaker is also contending with a dated product lineup.
Additionally, Tesla’s brand image has suffered in Europe amid growing public backlash against CEO Elon Musk, who has been the target of consumer boycotts due to his political activities. As a result, Tesla’s European sales have fallen 37.1% year-to-date.
Despite the challenges, Musk has emphasized the company’s future in artificial intelligence and autonomous driving. Tesla recently piloted a robotaxi service in Austin, Texas, receiving a favorable response from investors.
Tesla shares are down 10% so far in 2025, though they have recovered much of their earlier losses.
