Tesla Sales Plunge Amid Fierce European EV Competition

Tesla's car sales in Europe fell nearly 28% year-over-year in May 2025, with sharp declines in France (67%), Germany (36%), and the UK (45%), as the overall European EV market grew by over 25%. The company's European market share dropped to 1.2%, while Chinese competitors such as BYD and SAIC doubled theirs to nearly 6%, fueled by rising demand for more affordable models. Tesla's struggles are attributed to increased competition, an aging lineup, and reputational issues linked to CEO Elon Musk's political activities. Norway was a notable exception thanks to strong Model Y sales. Meanwhile, Tesla's robotaxi pilot in Austin drew attention after safety incidents, and the company's global challenges have contributed to a decline in its stock price. Investors now await the Q2 delivery report, hoping new models will revive demand.