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    Tesla’s Seven-Month Slump in Europe Signals Eroding EV Leadership

    Lakisha DavisBy Lakisha DavisAugust 7, 2025
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    Tesla’s Seven-Month Slump in Europe Signals Eroding EV Leadership
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    Anyone who actively monitors the market’s state knows that, contrary to the general trend of electrification, Tesla is demonstrating a troubling but steady decline in Europe. Sales figures, like Tesla stocks, have been falling in European countries for the seventh month in a row, painting an unsightly picture for the once-confident segment leader.

    It is typical of Tesla’s quarterly reports that it traditionally avoids detailing by region, preferring to emphasize global successes. However, after analyzing the reports and comparing the results for individual markets, everything becomes clear — European demand for the products of the American EV giant is rapidly cooling.

    The July results only confirmed an alarming trend:

    • Sweden: A drop of 86% (163 cars in total).
    • Denmark: Minus 52% (336 cars).
    • Netherlands: 62% decline (443 cars).
    • Belgium: A decrease of 58%.
    • Portugal: Minus 49% (284 cars).
    • Italy: A relatively modest decrease of 5% (457 cars).
    • France: A decrease of 27% (1,307 cars) — it looks safe only against the background of its neighbors.
    • Norway: 83% collapse, despite the brand’s historically strong position in this key electric vehicle market.
    • Spain: A decrease of 27% (702 cars), while the overall market for hybrids and electric vehicles grew by 155%.

    At the same time, the general condition of the passenger car market in most of these countries remains positive. Only France (-8%), Italy (-5%), and Belgium (-2%) showed a slight decrease. This clearly indicates that the problem is isolated to Tesla and does not extend to the entire sector.

    In fact, several automakers and related companies have recently appeared among the top stock gainers, reflecting growing investor confidence in rivals and emerging EV players. Notably, China’s BYD has seen a sharp rise in both European sales and stock performance, as its competitive pricing and fast-paced innovation attract attention.

    The contrast highlights the success of China’s BYD, whose sales in Europe soared 8-fold in July, totaling 2,158 vehicles for the year. Thus, Tesla’s sales in Europe have collapsed by more than a third over the past six months, and the status of the EV market leader is being questioned more than ever.

    Elon Musk sees the root of the problem as stemming from regulation. The head of Tesla attributes the decline in demand to the difficulties posed by the limitations on self-driving systems, which he considers a key function. European laws, he said, significantly limit the capabilities of self-driving systems, preventing them from offering customers the same level of automation as in the US. This, according to Musk, undermines the brand’s attractiveness.

    The restyled Model Y sales began in March, but they could not reverse the negative statistics. Norway was the only bright spot for the company, where the number of orders for the new Model Y increased 4 times in July. However, even this surge has no underlying factors of fundamental demand. This is driven by interest-free installments on the purchase of Tesla electric vehicles, which are available to local residents.

    The decline in sales in such a competitive European market poses issues for Tesla that the company must resolve as soon as possible. The Board of Directors understands that focusing on premium technologies like advanced autopilot faces the harsh realities of local laws and growing competition, especially from aggressive Chinese players like BYD, a competitive balance of price and performance.

    However, Musk’s mention of these difficulties seems more like an explanation of a solution-oriented strategy. Nevertheless, Tesla is known for its ability to adapt products, pricing, and marketing strategy to the specifics of any market. In an environment where the EV market is growing but the company is passing this growth by, it will become a key factor in stopping the seven-month decline.

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    Lakisha Davis

      Lakisha Davis is a tech enthusiast with a passion for innovation and digital transformation. With her extensive knowledge in software development and a keen interest in emerging tech trends, Lakisha strives to make technology accessible and understandable to everyone.

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