Tesla's Europe Sales Crashing Despite New Model Y

Tesla's been seeing a steady drop in European sales lately, and it looks like it's not just because of the temporary effect of the Model Y transition. For the fourth consecutive month, the electric vehicle company's figures are decreasing across key metrics, with particularly sharp drops this time.

Even with the updated Model Y out now, which was supposed to fix the slow Q1 sales, things are still going down in several significant European markets in Q2 2025.

The EV giant experienced a substantial 37% drop in European sales in Q1 2025. Initially, shareholders attributed this downturn to the introduction of the redesigned Model Y, a claim Tesla echoed by citing delivery adjustments.
However, contrary to expectations, sales have not rebounded post-Model Y launch. In fact, in five major European markets, their sales at the start of Q2 2025 are down about 50% compared to last year. That's even worse than the already low sales from Q1.


Reports indicate that car sales in France plummeted by 59.4% compared to the previous April, with a mere 863 units sold. Denmark also saw a significant drop of 67.2%, resulting in only 180 cars sold that month.
Reuters highlights Sweden as experiencing the most severe decline, with sales falling by 80.7% from 1,052 units last April to just 208 this year.




It's tough to say if Tesla will actually grab more of the European market with their new Model Y right now. One major factor contributing to Tesla's decline is the heightened competition from new Chinese EV automakers that are bringing attractive and frequently less expensive electric vehicles to the European market
In addition, Elon Musk's public comments on political issues haven't helped, and have turned some potential European buyers away.