Tesla Sales in Europe Continue to Decline

Sales of Tesla’s new vehicles in the European market dropped sharply in May — down 27.9% from the same time last year — even as electric vehicle demand across the region surged by over 27%.

Despite growing interest in fully electric cars, Tesla’s updated Model Y hasn’t sparked a turnaround for the company in Europe.

Total vehicle registrations across Europe rose modestly by 1.9% in May, with notable increases coming from hybrid vehicles and models using non-traditional fuel sources, according to recent auto industry data.

This marks the fifth consecutive monthly decline for Tesla in the region. Analysts attribute the trend to consumers increasingly opting for more affordable electric options, particularly from Chinese automakers. Some buyers have also been put off by the public statements of Tesla’s CEO.

Tesla’s presence in the European market has diminished, holding just 1.2% of market share in May—down from 1.8% a year earlier.

The refreshed Model Y was introduced in hopes of renewing interest in Tesla’s lineup as legacy brands and fast-growing competitors from China aggressively expand their EV offerings during a time of rising trade tensions.

Meanwhile, Chinese EV producers continued to gain traction despite newly imposed tariffs, selling over 65,000 units in the region last month. Their overall share of the European market rose to 5.9%, effectively doubling year-on-year. One leading Chinese automaker nearly matched Tesla’s sales in May after overtaking it the previous month.

Across the EU, UK, and EFTA, vehicle sales climbed to 1.11 million units in May, rebounding after a slight decline in April.

Some major car brands recorded growth: a state-owned Chinese firm saw a 22.5% increase in registrations, while a leading German automaker grew 5.6%. In contrast, one prominent Japanese brand saw its sales dip by 23%.

Despite the overall year-to-date dip of 0.6% in EU car sales, electric and hybrid-powered vehicles remain in demand. Registrations of battery-only EVs rose by 26.1%, plug-in hybrids increased by 15%, and hybrids jumped nearly 20%.