In June 2025, major European automakers such as Volkswagen, Stellantis, Renault, and Hyundai reported significant sales declines, with decreases of 6.1%, 12.3%, 0.6%, and 8.7% respectively compared to the same month in 2024.

Tesla faced a challenging first half of 2025, experiencing a 33% drop in sales in Europe and a 14% decline in vehicle deliveries, leading to a net profit decrease of 16% and revenues that fell short of analysts' expectations.

Despite the overall downturn in sales, registrations of battery electric vehicles (BEVs) rose by 7.8%, totaling 168,488 units, largely driven by a remarkable 103.2% surge in Spain.

Fully electric vehicle sales across Europe grew by 22%, with notable increases in Germany and Belgium, contrasting with a decline in France, highlighting a mixed market response.

The European electric vehicle market expanded by 24%, reaching 1.177 million units sold, with Chinese brands like BYD and Xpeng increasing their market share significantly.

Regulatory changes in the EU, including the 2035 ICE ban, are reshaping the automotive landscape, favoring companies with localized supply chains and hybrid capabilities, which pose challenges for Tesla.

Tesla's difficulties are compounded by rising competition from Chinese manufacturers and negative public sentiment towards CEO Elon Musk, which has resulted in boycotts in various markets.

In an effort to mitigate brand alienation, Tesla has opened its Supercharger network to other automakers, although this initiative is currently limited to North America and faces skepticism in Europe.

Tesla's reliance on pure battery-electric vehicles makes it vulnerable in markets with uneven charging infrastructure and a growing demand for hybrid vehicles.

New brands are emerging to meet consumer demand for cleaner, cheaper cars, filling gaps left by traditional automakers, as highlighted by the founder of EV data analysis firm New AutoMotive.

BMW secured the third position in EV sales with a 14% increase year-over-year, selling 93,576 units, indicating strong competition in the electric vehicle market.

Hybrid vehicle registrations in the EU rose significantly, driven by growth in countries like France and Spain, showcasing a shift in consumer preferences towards hybrid models.