Tesla (TSLA) sales continue to crash in Europe despite new Model Y

Tesla’s sales in several key European markets continue to decline sharply in Q2 2025, despite the new Model Y, which was blamed for disappointing sales in the first quarter, now being available.

Over the past couple of years, Tesla’s sales in Europe have been declining.

In 2024, Tesla delivered 11% fewer vehicles in Europe compared to 2023 – despite having ramped up production at its Gigafactory Berlin, where it produces Model Ys for the European market.

While this was already a bad sign for Tesla, sales started to decline at a much sharper rater in 2025 compared to an already bad 2024.

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In Q1 2025, Tesla’s sales in Europe declined 37% compared to Q1 2024.

Tesla shareholders were holding on to the theory that the decline was almost entirely attributable to the Model Y changeover.

The automaker updated the design and some features of the Model Y, its best-selling car, limiting availability as it updated production lines in the first quarter.

It must indeed have had an impact and Tesla also blamed the Model Y changeover for lower deliveries in Q1 during its earnings call last week.

However, it also stated that production is now back to normal in April, and yet, Tesla’s sales continue to decline in Europe.

Within the 5 European markets that report car registrations daily, Tesla is not only tracking down about 50% from the same period in 2024 (Q2 2024), but it is also tracking behind its terrible Q1 2025 despite having the new Model Y:

We are also starting to have some monthly numbers from other European markets.

In France, Tesla reportedly delivered only 863 vehicles in April. That’s down 59% year-over-year and down 24% from the first month of Q1 2025.

In Denmark, the automaker has delivered only 180 vehicles in April. That’s down a staggering 67% compared to April 2024 and 59% from January 2025, when Tesla did not yet have the new Model Y.

In Portugal, Tesla delivered only 239 vehicles in April based on registration data – down 47% year-over-year and down 39% from the first month of Q1 2025.

More data from European countries is expected to be released in the coming days, with the full dataset to be made available later this month.

In Q1 2025, Tesla’s 37% decline in sales in Europe coincided with a 24% surge in battery electric car sales.

Electrek’s Take

This is rapidly looking like a demand collapse for Tesla amid a surge in BEV sales from competitors in Europe.

Whenever you have a market leading rapidly losing market shares in a surging market, it is a massive red flag.

Tesla shareholders have been holding on to the idea that it was all due to the Model Y changeover, but that hope is fading.

It looks like Tesla’s sales are not doing much better right now, despite the new Model Y being in inventory.

You can get a new Model Y delivered today in France:

Sure, the RWD versions are coming just next month and should help a bit with volume, but Tesla has even more competition down market with Model Y.

The fact that the AWD is not selling in significant numbers should be extremely worrying.

Tesla is being squeezed out of the European market, in large part due to most consumers’ dislike for its CEO.