Tesla’s footing in Europe’s electric vehicle (EV) market is looking increasingly shaky as sales continue to fall, even while overall demand for EVs accelerates across the region. New registration data shows the automaker posted another year-over-year decline in August, marking the eighth consecutive month of shrinking numbers.
According to figures released by the European Automobile Manufacturers’ Association (ACEA), Tesla’s EV registrations fell by 23% year-over-year in August, with 14,831 units registered across Europe compared to 19,136 in the same month of 2024. Over the first eight months of 2025, Tesla’s European registrations have dropped 32.6%.
Tesla’s downturn comes at a time when EV adoption across Europe is strengthening. Battery-electric registrations rose 26% through August compared to last year, even as gas and diesel sales fell more than 20%. In Germany, Europe’s largest car market, EV sales surged by 46% last month.
By contrast, Tesla has now recorded eight consecutive months of year-over-year declines in the region, suggesting its recent vehicle updates and pricing adjustments have not been enough to resonate with European consumers.
Adding to Tesla’s struggles is the rapid growth of Chinese EV manufacturers. BYD tripled its European sales in August, registering 9,130 units in the EU and 11,455 when including the U.K. and other European markets. SAIC Motor also posted strong results with 12,822 units sold, a 59% jump compared to last year.
Tesla’s challenges are not limited to competition and pricing. CEO Elon Musk’s political activities have sparked controversy in Europe, including his endorsement of Germany’s far-right AfD party and his appearance at a U.K. rally earlier this month which risk alienating potential customers in a region where brand perception is critical.
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