Tesla’s European sales slump continued in May 2025, with sharp sales declines in key markets like Germany and the United Kingdom, despite a surge in overall electric vehicle (EV) registrations across the region.
German Sales Drop
According to new registration data from Germany’s Federal Motor Transport Authority (KBA), Tesla registered just 1,210 new vehicles in May, representing only 2.81% of the German battery electric vehicle (BEV) market. This is a stark contrast to the overall BEV market in Germany, which saw 43,060 units registered in the country last month.
In terms of the broader passenger vehicle market, Tesla’s share fell to just 0.51% of the 239,297 new cars registered.
Tesla’s performance is also in contrast to overall EV sales in Germany, which rose nearly 45% year-over-year, while Tesla’s own registrations plunged 77% compared to May 2024. In the first five months of 2025, Tesla’s German sales dropped from 28,340 units in 2023 to just 7,030 units—a year-to-date decline of 75%.
UK Sales Mirror German Decline
In the United Kingdom, Tesla’s May 2025 sales also took a hit. Preliminary data from New AutoMotive shows a drop of over 45% year-over-year, with only 1,758 Tesla vehicles sold, down from 3,244 in May 2024.
While BEV sales in the UK increased 28% overall, Tesla’s shrinking market share saw it fall behind rivals like Volkswagen, BMW, Audi, and Skoda. Even Chinese automaker BYD posted strong gains, doubling its UK sales to 1,388 units last month. (via Reuters)
Despite the decline, Tesla remains the best-selling EV brand in the UK year-to-date.
Broader Challenges for Tesla in Europe
Tesla’s sales slump comes amid growing competition from European and Chinese EV manufacturers, who continue to release new models at competitive prices. At the same time, CEO Elon Musk’s controversial political statements have drawn criticism in many parts of Europe and may be influencing consumer sentiment.
Chinese EV makers are also rapidly gaining ground. In Germany, BYD’s registrations soared ninefold to 1,857 units in May, surpassing Tesla’s total.
Tesla’s European downturn raises questions about the future of Giga Berlin. The factory, which opened in 2022, is designed for 500,000 vehicles annually, and with a planned expansion, is aimed to ramp up to 1 million cars per year. However, at the current pace, Tesla may struggle to produce and sell even a quarter of the plant’s capacity in 2025.
