Tesla sales plunge in EU despite surge in electric car market

Tesla's sales in the European Union tumbled 42.4% in July from a year earlier, even as the region's electric vehicle market accelerated, according to figures released Thursday by the European Automobile Manufacturers' Association (ACEA).

The US-based company led by billionaire Elon Musk sold 6,600 vehicles in the EU last month, down from 11,465 in July 2024. Across Europe -- including the EU, the European Free Trade Association and the United Kingdom -- Tesla's sales dropped 40.2% year-on-year to 8,837 units.

The decline stands in stark contrast to the broader market. Battery-electric vehicle sales in the EU jumped 39.1% in July, reaching 142,699 units, ACEA said.

Chinese manufacturers, meanwhile, continue to expand their footprint. Sales by Chinese automakers in Europe climbed 63% in June compared with a year earlier, totaling 65,808 units, according to industry data provider JATO Dynamics. Their market share nearly doubled to 5.7% that month.

Tesla's sales have been rapidly declining in Europe in recent months due to Musk's controversial political stances, his intervention in European politics and rapid competition from Chinese brands.