Tesla experienced a significant decline in European sales in 2025. In December, sales dropped 31.9% year-over-year to 21,485 vehicles. Market share shrank to 2.2% from 3.5% the previous year.
For the full year 2025, European sales fell 37.9% to 150,504 units. This downturn occurred while the overall European battery-electric car market grew. The BEV market share increased to 17.4% in 2025, up from 13.6% in 2024.
The decline highlights increasing competition, particularly from Chinese automaker BYD. BYD saw its European sales nearly triple in December.