Tesla’s electric vehicle sales have dropped for the fifth consecutive month in key European markets, including Britain, Germany, and Italy. The decline is largely attributed to the company’s CEO Elon Musk’s politics and a lack of competitive pricing compared to Chinese rivals.
However, Tesla expects an increase in sales once its new Model Y variant arrives. Deliveries of the revamped car have already started in Norway, where they have boosted sales. In contrast, China saw significant declines in Tesla sales due to lower prices offered by local EV manufacturers.
The new Model Y is set to enhance Tesla’s aging model range and compete with traditional automakers and Chinese rivals that are launching EVs rapidly. Despite this, Tesla remains a dominant force in the European market. For example, its sales in Germany fell 36.2% in May, while those of rival BYD increased ninefold.
Industry-wide sales data shows that Tesla has been pushed to fifth place for EV sales behind Volkswagen, BMW, and their respective brands Audi and Skoda. Meanwhile, the UK saw a significant decline in Tesla’s sales, with industry-wide EV sales jumping 28% in May.
As deliveries of the new Model Y begin, Tesla anticipates an increase in sales, particularly in Britain where stock levels have been depleted due to strong demand for the older model.
Source: https://www.reuters.com/business/autos-transportation/teslas-german-car-sales-continue-decline-may-2025-06-04