Tesla sales fall again in Europe

The volume of Tesla sales across the European region declined substantially in May, shooting its respective stock downward as investors lose trust in the success of the EV company.

Tesla Inc. Chief Executive Officer Elon Reeve Musk.

Tesla recently hyped up the launch of the Robotaxi, which aims to provide consumers with a nationwide service of self-driving electric vehicles. After the announcement and launch, the company's stock surged by dozens of dollars per share as investors grew optimistic.

But now, Tesla is blundering once again like before the launch of the Robotaxi.

A report from the European Automobile Manufacturers Association (ACEA) showed that the sales of Tesla-made EV products fell 27.9% in May; this equates to roughly 13,863 vehicles, a very substantial number of Tesla's total number of vehicles manufactured, roughly 1.8 million cars in 2024.

Tesla factory in Berlin, Germany.

Yet, data combining the United Kingdom and the European Free Trade Association estimated a 25% increase in EV registrations with overall registrations having fallen 0.6%.

Some regions in Europe have had even worse declines for Tesla. According to Reuters, sales in France fell 47%, with registrations having fallen 67% in May to a mere 721 units. In other regions, registrations fell my large numbers as well; Denmark's registrations fell 30.5%, the Netherlands' registrations fell 36%, Portugal's registrations fell 68%, and Spain's registrations fell 19%.

This data shows that Tesla's market share in the European electric vehicle industry is declining substantially. Companies such as Volkswagen, BMW, Mercedes-Benz, and Renault have adapted to the growing EV market by switching to hybrid or fully electric models, which the market previously lacked from most companies apart from Tesla. This heightened competition means that consumers have more options, including more affordable ones than Tesla, which has been deemed as fairly costly for the average car-buyer.

Many have blamed Tesla's recent losses in Europe and the world due to the deteriorating reputation of its CEO, Elon Musk. Musk recently alienated many Trump supporters after calling for his impeachment and opposing Trump's "Big, Beautiful Bill." Also, many Europeans are preferring cheaper domestic products which have not been as heavily impacted by Trump's steep tariff rates.

Tesla stock fell by almost 5% on Wednesday, June 25th.