Tesla shares fell more than 4% on Thursday, September 25, 2025, after new data from Europe showed a further decline in the company's sales. Despite the growing demand for electric vehicles in the region, Tesla is showing the opposite trend, writes CNBC.
According to the European Automobile Manufacturers Association (ACEA), only 14,831 Tesla electric vehicles were registered in August 2025, a 23% drop from the year before (19,136). In the first eight months of this year, registrations fell even more significantly, by 32.6%.
By comparison, the overall electric car market in Europe grew by 26% year-on-year. However, registrations of petrol and diesel cars fell by more than 20%. This shows that Tesla is gradually losing market share, while competitors, including Volkswagen and China's BYD, are increasing their presence.
At the same time, RBC analysts are more optimistic. They predict that Tesla will deliver about 456 thousand cars in the third quarter, which is higher than market expectations (440-448 thousand). The main factor in the growth is demand in the United States, where buyers are trying to take advantage of the $7,500 federal tax credit, which expires at the end of September.
Even despite Thursday's drop, Tesla shares have partially recovered from a poor start to the year: in 2025 they have already added 5% after a 36% collapse in the first quarter.
However, experts say the brand is being negatively affected by Elon Musk's political statements. His support for the German far-right AfD and participation in a radical anti-immigrant rally in the UK have sparked a wave of criticism. Prime Minister Keir Starmer even called Musk's statements "dangerous."
To regain consumer trust, Tesla is working to launch a more affordable model that could respond to pressure from competitors and re-strengthen the company's position in Europe.