About two months ago, Elon Musk pledged to step back from politics and refocus on turning around Tesla. But so far, his efforts have had little impact in Europe, Tesla’s second-largest market outside the U.S. In May, Tesla’s sales in the region declined for the fifth consecutive month, according to data released today (June 25) by the European Automobile Manufacturers Association (ACEA). The company sold just 13,863 vehicles last month, down nearly 28 percent from a year earlier. Tesla’s market share in Europe also slipped to 1.2 percent from 1.8 percent last year. Tesla shares dropped 4 percent today, wiping out much of the stock’s gains from its robotaxi launch earlier this week.
Tesla’s year-to-date performance in Europe has also suffered. The company sold 75,196 vehicles in the first five months of 2025, down sharply from 119,482 during the same period last year. Meanwhile, rival EV makers are gaining ground in the region, with overall EV sales up 27 percent in May compared to 2024. Notably, China’s SAIC Motor saw the largest year-over-year gain in Europe in May, with EV sales up 22.5 percent.
Other Chinese automakers are also making swift gains in Europe. In May, Chinese car companies more than doubled their market share to 5.9 percent, up from 2.9 percent a year earlier, according to data released yesterday (June 24) by JATO Dynamics, an auto industry data provider. A total of 65,808 Chinese-made vehicles were registered across the region. BYD, which dethroned Tesla earlier this year as the world’s largest EV maker, outsold the Musk-led company in Europe for the first time in April. (It sold 40 fewer vehicles than Tesla in May, per registration numbers.)
“Despite the E.U.’s imposition of tariffs on Chinese electric vehicles, its car brands continue to post strong growth across Europe,” said Felipe Munoz, global analyst at JATO Dynamics, in a statement. “Their momentum is partly due to their decision to push alternative powertrains, such as plug-in hybrids and full hybrids, to the region.”
In an effort to stay competitive and modernize its product lineup, Tesla recently began delivering updated versions of its top-selling Model Y SUV. But so far, the changes have had limited impact on the company’s performance in Europe.
One notable exception is Norway, where Tesla remains a standout. The country, which leads the world in EV adoption, saw Tesla registrations soar to 2,600 last month—a 213 percent increase from a year ago, according to the Norwegian Road Federation. The jump was largely driven by Model Y sales, which rose to 2,346 units, up from just 690 in May 2024.