Tesla Won’t Like New Sales Figures in Challenging European Countries originally appeared on Autoblog.
Tesla sales fall in multiple key markets while Musk waits on FSD approval
Tesla registrations fell in several significant European countries during July, including France, Denmark, and Sweden, for the seventh consecutive month. The electric automaker registered 1,307 new vehicles in France during July, down 27% year-over-year. In Denmark, Tesla sold 336 cars, representing a 52% annual decline. Swedish Tesla sales during July were especially bleak at 163 vehicles, an 85.8% year-over-year drop. The company’s Model Y SUV revamp was supposed to drive sales, which included the release of a long-range four-wheel drive version in March and a rear-wheel drive variant in May, but it failed to do so. In July, Denmark Model Y registrations decreased by 49%.
The fallout from Elon Musk’s political presence, regulatory hurdles, and tough competition from Chinese and European brands are all creating Tesla’s perfect storm of adversity on the continent. Regarding regulatory hurdles, Musk said during Tesla’s Q2 earnings call in late July that the company’s European sales would “significantly” improve once Tesla can fully deploy its semi-autonomous Full Self-Driving (FSD) software. Musk added: “This is a very important point to convey. We have been working with the Netherlands, and I think we are close to getting [FSD] approval there,” according to EV.
Different legal frameworks have partly contributed to FSD approval in the European Union (EU) taking longer than Tesla would like, as the EU requires a more precise definition of who’s at fault in a self-driving crash. Tesla also needs approval from each country, and different nations have varying opinions on autonomy. The EU generally limits self-driving approval to Level 2 systems, aligning with FSD. While Mercedes-Benz became the first automaker allowed to enable Level 3 autonomy in the EU, it’s only approved on the highway at a lower speed than the autobahn’s average pace. Mercedes-Benz’s Level 3 system also uses LiDAR (light detection and ranging) technology, which is more expensive but often considered more capable than Tesla’s self-driving system, relying on cameras and several neural networks or deep learning systems.
France’s auto market is shrinking
In July, car sales were up 20% in Denmark and 6% in Sweden, but Tesla faces unique challenges in countries like France, where new vehicle registrations fell 8% year-over-year, according to Reuters. During June, France’s car sales slid 6.7%, while Tesla’s sales there dropped 10%. In Q2 as a whole, Tesla’s registrations in France declined 67%. While France’s downward auto sales aren’t limited to Tesla, the automaker’s struggles in the nation stand out. Tesla’s market share in France has fallen from 1.6% in 2024 to 0.9% in 2025, outpacing the overall European market’s decline of 7%. Additionally, hybrid cars represented nearly 50% of France’s new car registrations in Q1, a 24.7% increase from last year. Tesla is up against France’s 6.6% decline in new battery electric vehicle (BEV) purchases during Q1, where the segment held an 18.2% market share. The average age of cars in France also reached a new high of 11.3 years in 2025, according to Futura Sciences.
Final thoughts
Elon Musk’s position appears to be that FSD availability across Europe will largely reverse the company’s negative course in several of the continent’s key markets, but regulatory hurdles aren’t the only factor holding Tesla back. Tesla is also dealing with increased pressure from Chinese competitors, a lack of affordable options, and continued backlash from Musk’s politics. Production of Tesla’s first affordable model, a stripped-down Model Y, is set to begin next quarter, later than expected, while low-cost Chinese electric models are already flooding into Europe.
Tesla Won’t Like New Sales Figures in Challenging European Countries first appeared on Autoblog on Aug 4, 2025
This story was originally reported by Autoblog on Aug 4, 2025, where it first appeared.
Comments