❓WHAT HAPPENED: Tesla’s market share in Europe fell for the sixth consecutive month in June.
👤WHO WAS INVOLVED: Tesla, Elon Musk, the European Automobile Manufacturers Association (ACEA), JATO Dynamics, BYD, Leapmotor, Xpeng, Volkswagen Group.
📍WHEN & WHERE: June 2025, Europe.
💬KEY QUOTE: Musk is warning his car company “could have a few rough quarters” in front of it.
🎯IMPACT: Tesla faces increased competition, particularly from China, and a loss of popularity tied to Elon Musk’s political activities.
Tesla’s market share in Europe fell to 2.8 percent in June, down from 3.4 percent the previous year, according to data from the European Automobile Manufacturers Association (ACEA). This marks the sixth consecutive month of market share decline for Elon Musk’s electric vehicle company.
The decline in Tesla’s market share comes as the company faces stiff competition from Chinese automakers such as BYD, Leapmotor, and Xpeng, whose market share in Europe almost doubled to 5.1 percent over the first half of the year.
Tesla’s new car registrations also dropped to 34,781 units in June, a decline of 22.9 percent compared to the same month in 2024. The company’s struggles are compounded by Elon Musk’s growing unpopularity, with liberals irked by his support for U.S. President Donald Trump’s 2024 campaign and conservatives irked by his betrayal of President Trump just months into his second term.
Ben Nelmes of New AutoMotive remains cautiously optimistic about Tesla’s future. He notes that the company could continue to innovate through new technologies in the electric and autonomous vehicle markets. However, he believes it is now “looking more likely to be a niche brand in a bigger electric car market.”
Tesla’s challenges in Europe are further exacerbated by potential financial pressures in the U.S., where the company may face higher tariff costs and the expiration of federal EV tax credits following the passage of the One Big Beautiful Bill Act—which Musk bitterly opposed.
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