In a nutshell: Tesla's sales in Europe are back in decline following a brief uptick during September. In some EU countries, the EV brand experienced drops of over 80%, reaching almost 90% in at least one European nation. The figures are a contrast to those in the US, where the company set a third-quarter record, but that was primarily driven by consumers making purchases before the end of the EV tax credits.

Tesla has been having a difficult time in Europe. Sales were down 50% in May, and a similar trend has been seen throughout most of 2025. The company did see a sales rise in several markets in September, but that optimism came crashing down last month.
Reuters reports that Tesla's new car registrations, which are described as a proxy for its sales, were down 89 percent in Sweden, 86 percent in Denmark, 31 percent in Spain, and 50 percent in Norway in October.
The figures will be especially disappointing for Tesla given that overall sales of fully electric and plug-in hybrid vehicles jumped 119% in Europe during the same period. Tesla's overall sales on the continent, meanwhile, were down 28.5% through September compared to the first nine months of 2024.
There was one EU country where Tesla didn't suffer: France, where the company posted a small increase in sales for the second consecutive month.
In the US, Tesla's sales were down 13.5% in the second quarter. It was also reported that its US EV market share had fallen below 40% in August for the first time ever.
There was some good news for Elon Musk in the third quarter when US sales spiked as buyers rushed to get federal tax credits before they ended. But analysts expect another crash in Q4.
Some of the blame for Tesla's falling sales is being placed on its limited and aging lineup of vehicles as Chinese rivals release new models at a rapid pace.
Tesla is having a hard time in China, too. Its sales were down 9.9% within the Asian nation in October following a 2.8% increase in September.
It's hard to ignore the Musk effect in all this. Tesla's CEO has always been a divisive figure, but his (former) closeness to President Trump and time as head of DOGE have pushed many Europeans, and plenty of Americans, away from Tesla purchases.
This week will see Tesla's annual meeting take place (November 6), when we'll discover if shareholders approve Musk's $1 trillion pay package. Board chairman Robyn Denholm believes the deal must go ahead or Tesla will risk losing its CEO.
Image credit: Tesla Fans Schweiz
