Tesla’s new car registrations in Europe dropped by 27.9% in May compared to the same month last year, marking the fifth straight month of declining sales.
This slump comes despite a 27.2% surge in overall electric vehicle (EV) sales across the region. The updated Model Y has yet to make a noticeable impact, as rival EV manufacturers continue to gain ground in the competitive European market, News.Az reports, citing Reuters.
Overall car sales in Europe rose 1.9%, with the strongest growth coming from plug-in hybrids and cars powered by alternative fuels, data from the European Automobile Manufacturers Association (ACEA) showed.
Tesla's European sales have now fallen for five straight months as customers switch to cheaper Chinese EVs and, in some cases, protest against Tesla CEO Elon Musk's politics.
Tesla's European market share dropped to just 1.2% in May from 1.8% a year ago.
The revised Model Y is meant to revamp the company's ageing model range as traditional automakers and Chinese rivals launch EVs at a rapid pace amid trade tensions.
May new car sales in the European Union, Britain and the European Free Trade Association rose to 1.11 million vehicles, following a 0.3% dip in April, ACEA data showed.
Registrations at Chinese state-owned SAIC Motor and Germany's BMW rose 22.5% and 5.6% respectively, while they fell 23% at Japan's Mazda.
In the EU alone, total car sales have fallen 0.6% so far this year.
That comes despite growing demand for EVs, with registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid-electric (HEV) cars rising 26.1%, 15% and 19.8% respectively.
EU sales of BEVs, HEVs and PHEVs combined accounted for 58.9% of passenger car registrations in May, up from 48.9% in May 2024.
Among the largest EU markets, new car sales in Spain and Germany rose 18.6% and 1.2% respectively, while in France and Italy they dropped by 12.3% and 0.1%.
In Britain, registrations were up 1.6%.
