German Tesla sales consistently drop off

In a recent survey by news agency Reuters, it was revealed that sales of Tesla vehicles in France decreased by around 47% compared to August last year. This trend is not limited to France, as Tesla's sales situation is deteriorating across Europe. In Germany, the decline is especially noticeable, with the company's market share now a mere 0.6%.

Tesla's German plant manager, André Thierig, stated that the Model Y is still the best-selling electric vehicle in Europe. However, the updated version of this important model, which has been available in its new generation since March, has not yet achieved the hoped-for success.

Established German manufacturers, led by the brands of the Volkswagen Group, are performing particularly well in the German electric vehicle market. Meanwhile, Chinese brands like BYD and MG are gaining ground despite the EU's special duties on Chinese electric vehicles.

The overall market for battery electric passenger cars in Germany saw a significant increase, with almost one in five new cars being purely electric. In August 2025, the number of new Tesla vehicle registrations in Germany was 1,441, a 39% decrease compared to the same period in the previous year.

Despite the decline in Tesla's sales, production planning for the third and fourth quarters at Tesla's German site in Grünheide has been adjusted upward. It seems that the company is focusing on improving production rather than sales at the moment.

Interestingly, the overall market for battery electric passenger cars in Europe is growing significantly. In Sweden, sales of Tesla vehicles decreased by over 84% compared to August last year, while in Germany, the number of new electric vehicle registrations grew by 45.7% in August 2025, with 39,367 newly registered electric vehicles.

This shift in the market could signal a challenging period for Tesla in Europe, as established manufacturers and emerging Chinese brands continue to make strides in the electric vehicle market. However, with its reputation for innovation and leadership in the electric vehicle industry, Tesla may still have opportunities to turn its fortunes around.