Tesla's EU Market Share Slips to 1.2% as Sales Decline
Tesla's dominance in the EU car market has slipped, with its share dropping to 1.2 percent in the stock market today. This follows a significant decline in sales in the first half of 2025, where Tesla ranked second behind Volkswagen in August, selling 14,245 electric vehicles. Meanwhile, Elon Musk has taken charge of production and sales in Europe after the departure of his long-time associate Omead Afshar.
Tesla's European market share has been declining steadily. In August 2023, the company's deliveries dropped by 36.6 percent year-on-year. Despite this, Tesla's global deliveries increased by 7.4 percent in the last quarter to 497,099 vehicles, driven primarily by US buyers taking advantage of the expiring federal tax credit for electric vehicles. However, analysts predict a future sales slowdown due to softening demand and the pull-forward effect of the US tax incentive expiration, with Europe's market weakness contributing to this outlook.
Tesla's production numbers also reflect this trend. In the last quarter, the company built around 447,410 cars, a decrease of 4.8 percent from the previous year.
Tesla's European market share has hit a low of 1.2 percent, with sales declining significantly in the first half of 2025. Despite a global delivery increase in the last quarter, analysts anticipate a future sales slowdown due to market conditions and the expiration of tax incentives. Elon Musk has taken over supervision of production and sales in Europe, aiming to turn around the company's fortunes in the region.
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