Tesla Sees Sharp Drop in EU Sales

(MENAFN) European Union vehicle registration data revealed a sharp contraction in Tesla's market presence throughout 2025, with the American EV manufacturer recording a 37.9% year-over-year sales collapse.

ACEA, the European Automobile Manufacturers' Association, published figures Tuesday showing Tesla delivered just 150,504 vehicles across EU markets in 2025—a steep decline from 242,436 units the previous year.

The company's EU market share contracted from 2.3% to 1.4% over the same period, according to the ACEA report.

December 2025 proved particularly challenging, with Tesla registrations dropping 31.9% compared to December 2024, totaling 21,485 units.

Across the broader European region—encompassing EU member states, the European Free Trade Association, and the UK—Tesla experienced a 20.2% December decline and 26.9% annual contraction.

This downturn occurred against a backdrop of surging battery electric vehicle adoption, with EU BEV sales climbing 29.9% to reach 1.88 million units in 2025.

Meanwhile, Chinese manufacturer BYD captured significant market territory, posting a 227.8% year-over-year increase to 128,827 units sold across the EU.

BYD's market share tripled from 0.4% to 1.2% during 2025, positioning the Chinese automaker within striking distance of Tesla's European footprint.

Industry analysts attribute Tesla's European erosion to multiple factors: billionaire Elon Musk's polarizing political commentary, his direct engagement in European political debates, and intensifying pressure from Chinese competitors flooding the market with competitive offerings.

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