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Tesla Inc. (NASDAQ: TSLA) saw its car sales drop sharply in France, Denmark, and Sweden in July 2025, extending a seven-month decline across key European markets.
According to official industry data, Tesla registered 1,307 new vehicles in France last month, marking a 27% decrease compared to July 2024. The broader French auto market also faced an 8% decline in total car sales during the same period.
Denmark posted an even steeper drop, with Tesla sales plunging 52% year-on-year to 336 vehicles. Registrations of the Model Y, the company’s most popular model in Europe, fell 49% in Denmark. In contrast, Denmark’s overall car sales rose 20% in July, highlighting Tesla’s underperformance in the region.
The downturn was most severe in Sweden, where Tesla’s new car registrations tumbled 85.8% to just 163 vehicles, based on data from Mobility Sweden.
These figures reflect broader headwinds facing Tesla in Europe. The company’s sales have dropped by more than one-third across the continent during the first half of 2025, as it faces intensifying competition from local automakers and Chinese electric vehicle (EV) brands. Price adjustments and ongoing supply chain challenges have further pressured Tesla’s market share in Europe, once a key growth driver for the company’s global expansion strategy.
The sustained decline underscores shifting dynamics in the European EV market, where traditional automakers and new entrants are ramping up offerings and incentives to capture demand. Industry analysts note that Tesla’s ability to stabilize sales in Europe will be crucial as it navigates a competitive global EV landscape and prepares for upcoming model updates.
