Tesla’s Problem In Europe Continues As Its Sales Plunged 56% In Germany Last Month

Tesla's sales decline in major European electric vehicle markets continues, with the American automaker losing significant market share despite strong overall EV demand in the region.

According to data released by Germany's Federal Motor Transport Authority on Wednesday, Tesla's new vehicle registrations in Germany plummeted 39% last month, with a cumulative drop of 56% in the first eight months of the year. This weakness has also spread to other markets, with Tesla's August sales in France, Belgium, Denmark, and Sweden also recording severe declines.

In stark contrast to the widespread downturn across the continent, the Norwegian market stands out as Tesla's only bright spot. Last month, Tesla's registrations in Norway bucked the trend with a 21% increase, and the cumulative growth so far this year has reached 26%.

However, growth in a single market is insufficient to reverse Tesla's global challenges. In the first half of this year, Tesla's global vehicle deliveries fell by 13%, putting the company on track for a second consecutive annual decline. Although U.S. consumers are expected to accelerate purchases before the federal tax credit expires this quarter, which may provide a boost for Tesla, ongoing weakness in European and Chinese markets could limit this potential upside.

German Market Leads the Decline, Norway Emerges as the Only Bright Spot

Data from Germany, Europe's largest auto market, is particularly striking. While the overall electric vehicle market is booming, Tesla's sales performance has taken a sharp downturn. Figures from Germany's Federal Motor Transport Authority show that Tesla's new vehicle registrations fell 39% year-on-year in August, while cumulative registrations from January to August plummeted 56%. Beyond Germany, data from national automotive associations also indicate significant contractions in Tesla's Augus sales in France, Belgium, Denmark, and Sweden.

Amid the widespread declines in major European markets, Norway's performance stands out exceptionally. As a traditionally strong market for Tesla, demand in Norway remains robust. Data shows that Tesla's registrations in Norway increased 21% year-on-year in August, with cumulative growth for the year reaching 26%. This growth makes Norway one of the few safe havens for Tesla in Europe.

Counter-Trend Decline Puts Pressure on Tesla's Global Prospects

Tesla's sales decline contrasts sharply with the overall growth trend of the European electric vehicle market, directly reflecting the erosion of its market share.

For example, in Germany, where Tesla's sales fell 39%, overall battery-electric vehicle (BEV) registrations in the industry surged 46% in August. Looking at Europe as a whole, BEV sales grew 26% in the first seven months of the year, while Tesla's sales fell 40% during the same period, highlighting a severe deviation from the mainstream market trend.

The challenges in Europe are part of Tesla's global struggles. In the first half of this year, the company's global deliveries fell 13%, putting it at risk of a second consecutive annual decline in deliveries. Although analysts expect short-term buying momentum in the U.S. market—driven by the impending expiration of tax credit policies—to boost performance this quarter, the extent of this boost will be limited by Tesla's performance in Europe. Additionally, ongoing declines in shipments from Tesla's factory in China add further uncertainty to the company's global growth prospects.