Tesla is facing yet another tough month in Europe. The electric vehicle (EV) giant saw its sales drop sharply in Sweden, Denmark, and France for the seventh month in a row, according to official July figures.
Sales were down a staggering 86% in Sweden, 52% in Denmark, and 27% in France compared to July 2024. Tesla sold just 163 vehicles in Sweden, 336 in Denmark, and 1,307 in France during the month, News.Az reports, citing Reuters.
Tesla’s best-selling vehicle, the Model Y, saw significant losses, including an 88% drop in Sweden and a 49% decline in Denmark. CEO Elon Musk acknowledged in July that strict EU regulations, especially those related to autonomous driving, are limiting Tesla’s ability to offer its full range of features—like supervised self-driving—that are available in the U.S.
“Our sales in Europe will improve significantly once we can offer the same driving experience as in the U.S.,” Musk told analysts last month.
Tesla is also feeling the heat from low-cost EV competitors, particularly from China. With its current models aging and no new affordable option expected until late 2025, the company is under pressure to refresh its offerings.
Although a revamped Model Y and a new budget-friendly model are in the pipeline, production delays mean Tesla won’t see benefits until the next quarter.
Despite Tesla’s decline, overall car sales rose by 20% in Denmark and 6% in Sweden, but dropped 8% in France in July. Meanwhile, several major European carmakers—Volkswagen, Mercedes-Benz, BMW, Renault, and Stellantis—have also reported weaker earnings and warned about falling demand and U.S. import tariffs.
Tesla’s future in the European market may depend on how quickly it can adapt to local regulations, accelerate production of its new models, and stay competitive with emerging EV brands.