Tesla just posted yet another one of its worst months in Europe. Sales dropped to 6,964 units in October, crashing 48.5% from the same time last year, according to the European Automobile Manufacturers’ Association (ACEA).
That’s the company’s 10th straight monthly decline in the region. And while Tesla stumbled, the rest of the EV market sprinted ahead.
Total electric vehicle registrations across Europe (covering the UK and the European Free Trade Association) jumped by 32.9%. Even total car registrations across all types went up by 4.9%.
EVs now hold a 16.4% share of Europe’s auto market. Tesla? Just 1.6%, down from 2.4% a year ago. The newer Model Y couldn’t reverse the trend. Neither could the hype.
Blame it on surging Chinese competition or on Elon Musk’s fading reputation across European markets. Whatever it is, Tesla’s not winning here anymore.
Chinese rivals take the wheel as Tesla slumps
Year-to-date numbers make it worse. In the first 10 months of 2025, Tesla sold 180,688 units, which is a 29.6% fall from last year. That’s a lot of metal missing from European roads.
Meanwhile, China’s BYD exploded into the scene with a 207% sales surge, hitting 17,470 units sold in Europe.
Another Chinese brand, SAIC, wasn’t far behind, clocking in nearly 24,000 vehicles, up 46% year-on-year. Tesla’s dominance is slipping hard, and its rivals aren’t slowing down.
Despite all this, the stock didn’t care. On Monday, Tesla shares jumped nearly 7%. Why? Because Wall Street’s not buying it for the cars. It’s about the software, the AI, and the dream of autonomy.
Melius Research called Tesla a “must own,” not because of sales charts, but because it thinks self-driving is coming soon. Analyst Rob Wertheimer wrote:
“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. Autonomy is coming very soon, and it will change everything about the driving ecosystem.”
The latest version of Tesla’s full self-driving software (FSD) is out in the US and a few other areas. But it’s still not available in Europe. That might change in February, though.
The Dutch RDW automotive regulator confirmed Tesla has a slot to demonstrate FSD next year. It hasn’t been approved yet. But if it passes, it could be a major shift for Tesla’s European play. That one greenlight could help stop the bleeding.
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