Despite improvements to the Model y, Tesla sales drop again around Europe
By Alessandro Parohi
(Reuters) – Registration of new Tesla vehicles in several major European markets fell in July despite the revamp of the signature model Y as EV makers struggle with resentment against CEO Elon Musk’s political views, regulatory challenges and increasing competition.
Tesla’s aging lineup faces a wave of low-cost EV rivals, especially from China. They are deploying improved Model Y and starting to produce new, inexpensive models, but their production will only increase in the next quarter, later than originally expected.
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Brand registration – Sales representative – fell 86% in July in July, 163 cars in Sweden, 52% to 336 cars in Denmark, 27% to 1,307 cars in France, 62% to 443 cars in Netherlands, 58% to 460 cases in Belgium, official industry data marks monthly drops in all countries.
They also fell from 5% to 457 units in Italy and from 49% to 284 units in Portugal.
Tesla sales fell by more than a third in Europe during the first six months of the year.
Norway and Spain fell below trend with 838 cars and 702 cars, increasing Tesla’s July registrations by 83% and 27% respectively.
Spain recorded a 155% jump in total sales of electric vehicles – either battery-electric or plug-in hybrids. Tesla’s Chinese competitor BYD sold 2,158 cars in Spain in July. This was almost eight times that of July 2024.
For the last three months of the year, Musk admitted Tesla could have “some rough quarters” in July, as there are no affordable vehicles on the horizon until the end of the $7,500 US tax credit for EV buyers.
He said strict self-driving regulations in Europe made it difficult to sell Model Y in some countries as monitored autonomous driving of vehicle options is a “huge selling point.”
“We believe that sales in Europe will be significantly improved when we can provide our customers with the same experience in the US,” he told analysts.
Tesla began selling a long-range four-wheel version of the improved Model Y in March 2025, and two rear-wheel drive drive variants began in May.
Model Y registrations in Sweden and Denmark fell by 88% and 49% respectively in July, but jumped to 715 cars more than four times the number in Norway.
Norway has seen a surge in model orders after automakers launched 0% interest loans in some Nordic countries to trigger demand if almost every new car on sale is completely electric and Tesla has been a bestselling brand since 2021.
Tesla launched its Trial Robotaxis service in Austin, Texas in June, using approximately 12 Model Y SUVs controlled by autonomous driving software. But the deployment of autonomous driving capabilities elsewhere in the US is shaking as they have not received the necessary permissions.