Tesla’s (TSLA) Europe woes are only getting worse.
According to the European Automobile Manufacturers’ Association (ACEA), Tesla EV registrations (a proxy for sales) in Europe fell to just 6,964 units in October, a 48.5% drop compared to a year ago. Meanwhile, total EV registrations in the region, which includes the UK and the European Free Trade Association, rose 32.9% in October, with overall registrations regardless of powertrain up 4.9%.
October’s total marks the 10th straight month of declining Tesla sales in Europe. Meanwhile, the overall market share of EVs in the broader European region grew to 16.4%.
Tesla’s sales hangover rolled on in certain key territories in Europe, with the introduction of the revamped Model Y not enough to blunt the effect of rising competition and CEO Elon Musk’s deep unpopularity.
October’s sales slide follows a rough 2025 for Tesla year to date in broader Europe.
In the first 10 months of the year, Tesla sales dropped 29.6% to 180,688 units, again per the ACEA. Conversely, Tesla’s overall market share in Europe dropped to 1.6% from 2.4% a year ago.
Meanwhile, Tesla’s big Chinese competitor BYD, which sells a mix of pure EVs and hybrids, reported sales jumping 207% to 17,470 units sold in Europe. Another major China rival, SAIC, saw sales climb 46% to just under 24,000 vehicles sold.
While weakening sales in a key, EV-centric region should be a concern, it hasn’t been a significant issue for Tesla stock.
On Monday, Tesla shares surged nearly 7% after Melius Research tabbed the EV maker a “must own” due to its autonomy efforts and as CEO Elon Musk talked up its chipmaking progress.
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“One of the reasons we called Tesla a ‘must own’ in our recent launch — despite all the obvious risks — is that the world is about to change, dramatically,” analyst Rob Wertheimer wrote. “Autonomy is coming very soon, and it will change everything about the driving ecosystem.”
The main spark appears to be the latest version of Tesla’s full self-driving (FSD) software, which is available in the US and select territories.
While investors own Tesla stock mostly for the AI and autonomous potential, there could be good news from the self-driving front for European buyers.
The Netherlands RDW automotive governing body said it has set up a schedule allowing Tesla to demonstrate in February whether FSD meets requirements but has not approved it yet.
Getting at least one automotive regulator in Europe to approve FSD would be a huge step in the right direction for Tesla and may help staunch the sales slide in the region.
Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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