Tesla (TSLA)’s Europe problems are getting worse.
Tesla electric vehicle registrations in Europe (a proxy for sales) fell to just 6,964 units in October, down 48.5% from a year earlier, according to the European Automobile Manufacturers Association (ACEA). Meanwhile, total EV registrations in the region, which includes the UK and the European Free Trade Association, rose 32.9% in October, with total registrations regardless of powertrain up 4.9%.
The October total marks the 10th consecutive month of declining Tesla sales in Europe. Meanwhile, the total market share of EVs in the wider European region increased to 16.4%.
Tesla’s sales have languished in some key European regions, with the introduction of the revised Model Y not enough to blunt the impact of increased competition and CEO Elon Musk’s deep unpopularity.
The October sales decline follows a tough 2025 year for Tesla in wider Europe.
According to ACEA, Tesla sales fell 29.6% to 180,688 units in the first 10 months of the year. In contrast, Tesla’s overall market share in Europe declined to 1.6% from 2.4% a year earlier.
Meanwhile, Tesla’s Chinese rival BYD (BYDDY), which sells a mix of pure EVs and hybrids, reported sales in Europe rose 207% to 17,470 units. China’s another major rival, SAIC, saw sales rise 46% to just under 24,000 vehicles.
While weak sales in the key, EV-focused sector should be a concern, it hasn’t been a significant issue for Tesla stock.
On Monday, Tesla shares rose nearly 7% after Melius Research dubbed the EV maker a “must own” because of its autonomy efforts and CEO Elon Musk talked up its chip manufacturing progress.
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“One of the reasons we called Tesla a ‘must-see’ in its 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 regions.
While investors mostly hold Tesla stock for its AI and autonomous capability, there could be good news from the self-driving front for European buyers.
The Netherlands RDW automotive governing body said it has set a schedule to allow Tesla to demonstrate in February whether it meets FSD requirements, but has not yet approved it.
Getting at least one automotive regulator in Europe to approve FSD would be a big step in the right direction for Tesla and could help prevent sales declines in the region.
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