Tesla’s electric vehicle (EV) registrations declined sharply across several key European markets in July, underlining a sustained downturn in regional demand despite recent efforts to reinvigorate sales with a refreshed Model Y.

According to official industry data, the drop in registrations marks the seventh consecutive monthly fall in countries such as Sweden, Denmark, France, the Netherlands, and Belgium.

In Sweden, Tesla’s registrations plunged by 86% year-on-year to just 163 vehicles. Similar sharp declines were reported in Denmark (52%), the Netherlands (62%), Belgium (58%), and France (27%). In southern Europe, sales in Italy and Portugal fell by 5% and 49% respectively. Across the continent, Tesla’s sales fell by more than a third in the first half of 2025.

The sustained decline comes despite Tesla’s rollout of a revamped Model Y, including long-range and rear-wheel drive variants, which became available across Europe between March and May 2025. Production of a lower-cost model, seen as key to recapturing market share, is now delayed until the next quarter.

Analysts cite a range of challenges contributing to Tesla’s slump. These include intensifying competition—particularly from Chinese automakers such as BYD—as well as regulatory hurdles in Europe, and growing consumer backlash over CEO Elon Musk’s controversial political positions.

In contrast to broader declines, Tesla saw notable gains in Spain and Norway. Registrations rose 27% in Spain, where electrified vehicle sales—battery electric and plug-in hybrids combined—surged 155% in July.

Tesla competitor BYD sold 2,158 vehicles in Spain, nearly eight times its total from a year earlier. In Norway, Tesla registrations jumped 83% to 838 cars, mainly driven by the company’s introduction of 0% interest financing in select Nordic markets.

Norway remains a key market for Tesla, with EVs dominating new vehicle sales and Tesla continuing as the top-selling brand since 2021. The Model Y has regained momentum there following the launch of the new variants and incentives.

Still, Elon Musk acknowledged in July that Tesla may face “a few rough quarters.” The impending expiration of the U.S. $7,500 EV tax credit, limited progress on regulatory approvals for full self-driving capabilities in Europe, and the absence of new budget-friendly models until the year-end are expected to weigh on performance.

Musk also cited strict European regulations on autonomous driving as a barrier to sales. “Our sales in Europe, we think, will improve significantly once we are able to give customers the same experience that they have in the U.S.,” he told analysts.