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Tesla’s car sales in Europe are falling for the eighth month in a row. In August 2025, Tesla sold just 8,220 cars in the European Union. This is a drop of 36.6% compared to August 2024. Meanwhile, overall electric car sales in Europe have increased by 30%. This indicates the problem lies with Tesla rather than the European EV market.
One reason is growing competition. Chinese carmaker BYD sold 9,130 cars in August, beating Tesla for the second month in a row. Other brands like MG and Geely are also offering new and affordable electric cars that attract buyers.
Tesla’s small lineup of cars is another problem. The company has not launched a new mass-market car since the refreshed Tesla Model Y came out earlier this year. Customers now have more choices, and price cuts on Tesla cars have lowered the value of used cars, making some people buy secondhand cars instead of new ones.
Elon Musk’s public political actions have also affected sales. Some people in Europe do not agree with his views, which have hurt Tesla’s reputation. Countries like the UK and Germany have seen large drops in sales because of this.
There are a few positive points. Norway saw Tesla sales rise by 21%, and Spain had a 161% increase. But even in these countries, competitors like BYD are growing faster and taking market share from Tesla.
Tesla has plans to introduce a somewhat more affordable car for European markets. The analysts believe that this will help increase sales. However, updates need to be made on the lineup, and price adjustments should be considered in view of competition. If not done, the drifting away of customers may continue for Tesla, towards BYD and VW.
The decrease in Tesla sales shows that the electric vehicle market in Europe is extremely crowded now. Buyers want an affordable car with the latest features, but it seems brand value is now biting harder on the customer. Tesla must quickly adapt to this business growing faster.
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