Tesla EU Sales Post Sharp Decline Despite EV Sales Surge

(MENAFN) Tesla suffered a sharp 42.4% decline in vehicle sales across the European Union in July compared to the same month last year, even as the bloc’s electric vehicle sector experienced significant growth, according to data published Thursday by the European Automobile Manufacturers’ Association (ACEA).

The U.S.-based automaker, headed by billionaire Elon Musk, sold just 6,600 vehicles in the EU last month—down from 11,465 in July 2024. When factoring in the wider European region, including the EU, the European Free Trade Association, and the United Kingdom, Tesla recorded a year-over-year drop of 40.2%, with total sales falling to 8,837 units.

That sharp drop contrasts with the overall momentum in the EU’s electric vehicle market. Battery-electric car sales surged 39.1% year-on-year in July, hitting 142,699 units, ACEA reported.

Meanwhile, Chinese carmakers continue to make aggressive gains. In June, Chinese brands sold 65,808 vehicles across Europe—a 63% rise from the previous year—according to data from industry tracker JATO Dynamics. Their market share nearly doubled, reaching 5.7%.

The downturn in Tesla’s European performance comes amid growing public backlash over Musk’s political interventions and escalating competition from Chinese manufacturers.

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