Tesla’s European Sales Slump 27.9% in May Despite EV Boom

Tesla’s new registrations in Europe fell nearly 28% year-on-year in May, even as electric vehicle (EV) demand in the region surged, government data revealed Wednesday.

According to figures from the European Automobile Manufacturers’ Association, Tesla (NASDAQ:TSLA) registered 13,863 vehicles across the EU, UK, and EFTA in May 2025 — down from 19,236 in the same month last year.

European EV Market Accelerates Without Tesla

The sharp drop in Tesla sales stands in stark contrast to broader market trends:

• Battery EV registrations jumped +27.2% y-o-y to 193,493 units

• Hybrid EVs also saw solid growth

• Overall car sales in Europe rose +1.9% y-o-y to 1.1 million units

• Petrol and diesel cars slumped -19.5% and -27.6% respectively

You can access the latest EV sales trends using the Revenue Product Segmentation API, which provides data on Tesla and other automakers’ electric vs. combustion product breakdowns.

Competition and Backlash Hit Tesla

Tesla's underperformance is attributed to several key pressures:

• Rising competition from European EV makers (Volkswagen, BMW) and Chinese firms like SAIC

• Stagnation in Tesla’s product refresh cycle — limited new launches amid a fast-moving EV market

• Consumer boycotts and political backlash against CEO Elon Musk, especially in Germany and France

Tesla’s year-to-date European sales are down 37.1% year-on-year.

Robotaxis and AI: A Pivot to the Future?

Despite the sales weakness, Tesla remains focused on autonomous innovation. Its recent robotaxi pilot in Austin, Texas, received positive attention from investors, positioning AI and smart driving as the company’s long-term growth levers.

Investors can use the Company Rating API to assess how Tesla’s fundamentals and forward-looking initiatives impact its overall investment grade and analyst outlook.

Conclusion

While the broader European EV market is booming, Tesla’s weakening sales suggest growing brand fatigue and stiff competition in the region. Whether AI-driven robotaxis can offset declining European volumes remains to be seen.