Tesla shares in the European crisis: Why there is more to it than weak sales figures

• Tesla’s sales in Europe fell by 48.5 percent in October, and its market share fell to 0.6 percent
• Chinese competitor BYD sold over 17,000 vehicles, more than twice as many as Tesla
• In Sweden and Denmark, Tesla saw declines of 89 and 86 percent, respectively

Sales slumped by almost 50 percent in October

Tesla’s sales crisis in Europe continues to worsen. As data from the European Automobile Manufacturers Association (ACEA) shows, the electric car manufacturer only delivered 6,964 vehicles in the European Union, the United Kingdom and the EFTA countries in October – a decline of 48.5 percent compared to the same month last year. This meant that Tesla’s market share shrank from 1.3 percent in October 2024 to just 0.6 percent. According to MarketWatch, this is the lowest since April 2025. Only two brands – British luxury brand Jaguar and Stellantis brand Lancia – saw even steeper declines.

For the year 2025 so far, Tesla’s sales decline in Europe amounts to around 30 percent. What is particularly explosive is that this slump is taking place against the backdrop of a growing overall market. The European electric vehicle market grew by 26 percent over the same period. Chinese competitor BYD sold 17,470 vehicles in the region in October – an increase of over 200 percent compared to the previous year. Volkswagen also sold more than three times as many electric vehicles as Tesla.

Political controversy and increased competition

In addition to the intense competition, the CEO’s political activities are also a burden Elon Musk the business. His ties to the Trump administration and right-wing populist parties in Europe have sparked backlash in several countries, according to MarketWatch. In Sweden, Tesla recorded a sales decline of 89 percent and in Denmark of 86 percent. Even in Germany, Europe’s largest car market, sales fell by over 50 percent.

Tesla has introduced cheaper versions of its bestsellers Model 3 and Model Y to win back customers. But the competition is intense. In addition to BYD, other Chinese manufacturers such as Xpeng and Zeekr are entering the European market. At the same time, established European manufacturers are expanding their electric vehicle portfolios. Analysts also criticize Tesla’s narrow model range: While competitors offer a wide selection of electric vehicles, plug-in hybrids and conventional vehicles, Tesla limits itself to purely battery-powered vehicles without a hybrid option.

Regulatory hurdles for full self-driving

In addition to the sales problem, Tesla is facing another challenge in Europe: the approval of its Full Self-Driving (FSD) driving assistance system. As the MarketWatch report shows, Tesla is relying on the Dutch vehicle authority RDW as the key to approval across Europe. At the end of November, Tesla announced on Platform X that the RDW had committed to granting national approval in February 2026.

Tesla has been working hard toward shipping Full Self-Driving (Supervised) in Europe for over 12 months now. We have given FSD demos to regulators of almost every EU country. We have requested early access, pilot release programs or exemptions where possible.

We have developed…

– Tesla Europe & Middle East (@teslaeurope) November 22, 2025

However, the RDW made it clear on its website that only a demonstration of the system was planned for February – this by no means guarantees approval. If the authority deems further testing necessary, it would be a setback for Tesla’s expansion plans. After national approval in the Netherlands, the company hopes to achieve recognition by other EU states and ultimately official approval by an EU committee.

Elon Musk has repeatedly expressed his displeasure with the regulatory approval process in Europe and urged European customers to put pressure on regulators. The release of FSD could not only provide Tesla with additional revenue, but also provide valuable training data for further development of the system – data that the company is currently missing in the European market.

D. Maier / editorial team finanzen.net

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