Tesla Faces Sales Decline in Europe Amid New Model Launches

Tesla's share of the EV market in Europe has dropped from 23.4% in Q3 2017 to 10.2% in Q3 2025, with a peak share of 36% in Q3 2019. The company's sales have significantly declined, with total sales of the Model Y dropping from 220,310 units in 2023 to 116,989 in 2025, while Model 3 sales fell from 73,385 to 62,629 in the same period.

In response, Tesla is introducing cheaper, decontented versions of the Model 3 and Model Y in Europe, and has reduced the price of the Model 3 in Germany from approximately 46,000 to 38,000 euros. Additionally, Tesla is promoting its Full Self Driving feature through customer test rides in Germany, France, Italy, Denmark, and Switzerland, aiming to stimulate demand after a more than 50% sales drop compared to 2024.