Tesla's European sales continue to skid despite new Model Y arrival

03 May 2025

The long-awaited arrival of the updated Model Y doesn't seem to make much difference, as sales of Tesla electric cars continue to decline sharply across key European markets in the second quarter of 2025.

Over the past year and a half, Tesla has witnessed a noticeable decrease in its European deliveries. In 2024, the American automaker shipped 11% fewer vehicles to the continent compared to the previous year, even with increased production at its Gigafactory in Berlin, which specifically manufactures the Model Y for European consumers. This initial dip has now turned into a serious slump in 2025.

In the first quarter of 2025, Tesla's European sales plummeted by 37%, with Tesla shareholders hoping this decline was due to the transition to the redesigned Model Y. The update initially limited its availability as production lines were adjusted. Tesla itself claimed that this changeover contributed to lower delivery numbers.

Unfortunately for the company, recent data indicates that the arrival of the new Model Y has not reversed this negative trend. Across five key European markets that provide daily car registration updates, Tesla's sales are down approximately 50% so far compared to the start of the second quarter of 2024. Alarmingly, these figures also lag behind the already weak sales numbers from the first quarter of 2025, even with the new Model Y now available.

More detailed monthly figures from individual European countries paint a similar picture. In France, Tesla reportedly delivered only 863 vehicles in April - a 59% decrease year-over-year and a 24% drop compared to January 2025. The situation is even worse in Denmark, where Tesla's April deliveries totaled only 180 cars – a dramatic 67% decline compared to April 2024 and a 59% decrease from January 2025, before the new Model Y was on the market. Portugal also experienced a drop, with only 239 Tesla registrations in April, representing a 47% year-over-year decrease and a 39% fall compared to the first month of the year.

This decline in Tesla's performance in Europe is occurring against a backdrop of overall growth in the battery electric car market. In the first quarter of 2025, while Tesla's sales shrank by 37%, the broader European EV market saw a 24% increase in sales.

Fresh data from April reveals even bigger contrasts. In Sweden, Tesla's new car sales plummeted by 80.7%, reaching their lowest point since October 2022. Sales in the Netherlands fell by 73.8%, marking the weakest April performance since 2022. Portugal also saw a significant 33% drop in Tesla sales in April, an even larger decrease than the previous month. Denmark experienced a 67.2% fall, and France reported a 59.4% decline. Curiously, Norway bucked this trend with an 11.8% increase in Tesla sales in April, totaling 976 vehicles.

These figures raise serious doubts about whether the launch of the revamped Model Y will be enough to help Tesla's standing in the European market. While the new model is now available for order across much of Europe, estimated delivery times on Tesla's websites in major markets like Germany, the UK, France, and Italy indicate that customers may not receive their vehicles until June. It will take several months of sales data to accurately assess the impact of the updated Model Y on consumer demand.

Increased competition from European automakers is playing a big role in Tesla's slump. Additionally, new Chinese EV manufacturers are entering the European market with compelling and often cheaper electric cars. According to Andy Leyland, co-founder of supply chain specialist SC Insights, "Tesla's technological lead has largely been eroded with the current model lineup. Competition from both legacy auto and Chinese entrants will be weighing on sales."

This increased competition is reflected in Tesla's recent financial results, with the company reporting a 20% slump in automotive revenue and a 71% plunge in net profit in the first quarter of 2025. Meanwhile, Chinese competitors like BYD, Chery, and SAIC have seen big increases in their combined sales of battery-electric and plug-in hybrid vehicles in the EU, with growth rates of 223%, 2,467%, and 4%, respectively, in the same period.

Despite these challenges, Tesla Chair Robyn Denholm recently dismissed reports of board members seeking a new CEO and reaffirmed confidence in the current leadership.

Via