Tesla’s struggles in Europe are deepening, as new data shows a steep decline in regional sales despite a booming electric vehicle market across the continent.
According to figures from the European Automobile Manufacturers’ Association (ACEA), Tesla registered just 6,964 EVs in October, marking a 48.5% year-over-year drop. The downturn stands in stark contrast to the broader European EV landscape, where overall electric vehicle registrations jumped 32.9% during the same period. Total vehicle registrations of all powertrains rose 4.9%, underscoring how sharply Tesla is underperforming relative to the market.
A Full Year of Declines
The October tally represents Tesla’s 10th consecutive month of shrinking sales in Europe, even as EVs expanded their footprint to reach 16.4% of the region’s total market share. Not even the refreshed Model Y—Tesla’s best-selling vehicle worldwide—has been able to stem the slide.
Much of the weakness stems from intensifying competition and what analysts describe as a growing distaste for CEO Elon Musk among European buyers. These headwinds have dragged down Tesla’s performance throughout 2025.
Year-to-Date Numbers Show a Deeper Problem
In the first ten months of the year, Tesla’s European sales fell 29.6% to 180,688 units, sharply reducing the company’s regional market share from 2.4% last year to just 1.6% today.
Meanwhile, Chinese EV manufacturers continue to flood the European market with attractively priced models. BYD—Tesla’s largest global rival—saw its European sales surge 207% to 17,470 vehicles. SAIC, another major Chinese player, grew 46% with nearly 24,000 units sold.
Yet Tesla’s Stock Keeps Climbing
Surprisingly, Tesla’s slumping sales in Europe have not dented investor enthusiasm. On Monday, Tesla shares rallied nearly 7% after Melius Research labeled the company a “must-own”, citing the automaker’s accelerating progress in autonomous driving and chip development.
Analyst Rob Wertheimer argued that Tesla’s advancements in autonomy could reshape the entire transportation ecosystem, calling it a transformative technology that investors shouldn’t ignore.
The optimism is fueled by the newest version of Tesla’s Full Self-Driving (FSD) software, now rolling out in the U.S. and select markets. Many investors view Tesla less as a carmaker and more as an AI-driven technology company, betting heavily on the future of autonomy.
Possible Breakthrough in Europe
While Europe has been slower to approve self-driving technologies, there are signs of movement. The Netherlands’ RDW vehicle authority announced it has scheduled an FSD evaluation for February, allowing Tesla to demonstrate whether the system meets regulatory requirements. Although no approval has been granted yet, even one European regulator green-lighting FSD would represent a major milestone.
Such a breakthrough could help Tesla regain momentum in a region where sales have been sliding for nearly a year.
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