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Tesla’s European EV Dominance Ends

Tesla’s European EV Dominance Ends

Tesla is experiencing difficult times in Europe. So challenging, that a traditional car manufacturer has surpassed it.

  • Tesla’s sales declined further in Europe during the first half of the year.
  • An American electric vehicle manufacturer experienced a 33% decline in sales compared to the same period last year, from January through June.
  • In the meantime, conventional car manufacturers have made significant progress in the area.

The figures are in, and it’s not shaping up well forTeslain Europe. Following the first six months of this year, the American electric vehicle company has reported a significant 33% decline in sales across the European Union, EFTA regions, and the United Kingdom, as per initial sales data fromData Force.

This has caused Tesla to drop from the top position on the list of top-selling electric vehicle manufacturers in the region, whereVolkswagen–the brand, not the group–has become the new leader. Between January and June, Tesla sold 108,878 vehicles in the region, whereas Volkswagen sold 133,465 EVs, representing a significant 78% year-over-year growth.

The Tesla Model Y remained the top-selling electric vehicle in Europe during the first half of this year. Nevertheless, its sales decreased by more than 30%.

Photo by: Tesla

In other words, Volkswagen sold 24,587 more electric vehicles in Europe compared to Tesla, solidifying its status as the top player in the area. This is a victory for traditional automakers. However, there’s more to it.

BMW, Skoda and Renaultalso made substantial progress during the first half of the year. BMW has become the third top-selling electric vehicle company in Europe, having sold 93,576 units, representing a 14% rise compared to the same time frame last year.

Due to the extremely popularElroq and updated Enyaq, Skoda achieved an extraordinary 146% rise in sales, resulting in a total of 70,947 electric vehicles sold between January and June. Renault, on the other hand, experienced a 58% increase in EV sales, largely due to the nostalgic design ofRenault 5.

Top-selling electric vehicle manufacturers in Europe during the first half of 2025:

Rank Brand H1 2025 Sales Difference from H1 2024
1 Volkswagen 133,465 78%
2 Tesla 108,878 -33%
3 BMW 93,576 14%
4 Skoda 70,947 146%
5 Renault 63,704 58%

Source: Initial sales data from Data Force.

Earlier this year, the CEO of TeslaElon Musk said that The company is experiencing a “significant recovery” in demand.after its factories were suspended in the first quarter for the necessary tooling improvements required to put theupdated Model Yavailable. However, this has not occurred yet in the United States, Europe, and China.

In terms of significance, Tesla remained the leading electric vehicle manufacturer in Europe during June, yet this wasn’t sufficient to secure the top position for the first half of the year. Indeed, among the top five electric vehicle producers in June, Tesla was the sole company experiencing a decline. With 32,605 vehicles sold, Tesla’s sales in Europe decreased by 21% compared to the previous year. Meanwhile, Volkswagen saw an increase of 9%, BMW rose by 16%, Skoda surged by 189%, and Renault grew by 23%.

The top-selling electric vehicles in Europe between January and June included the Tesla Model Y, Tesla Model 3, Volkswagen ID.4, Volkswagen ID.7, and Volkswagen ID.3.

In total, the European electric vehicle market saw a 24% rise compared to the previous year, rising from 944,858 units in the first half of 2024 to 1,177,051 units this year.