Tesla Sales Drop Again in Europe as Model Y Refresh Awaits Wider Launch

Tesla’s sales in key European markets dropped for a fifth straight month in May, with steep declines reported in the UK, Germany, and Italy.

The electric carmaker is facing growing pressure from political backlash linked to CEO Elon Musk, as well as tougher competition from traditional automakers and cheaper Chinese EV brands.

In Germany, Tesla sold just 1,210 vehicles in May—down over 36% from a year ago—despite a 45% overall jump in electric vehicle sales. Chinese rival BYD saw its sales in Germany soar ninefold during the same period, reaching 1,857 units.

In the UK, Tesla sales tumbled more than 45% year-over-year, while the overall EV market grew by 28%. Tesla fell to fifth place in UK EV sales, behind Volkswagen, BMW, Audi, and Skoda, according to data from New AutoMotive.

Italy also saw a 20% drop in Tesla sales last month, while the country’s broader EV market surged by over 40%.

A Tesla UK spokesperson attributed the drop to limited inventory, saying the company had sold off its older Model Y stock and is now awaiting deliveries of the refreshed version from its Berlin factory. The updated Model Y—once Europe’s top-selling car—is expected to boost sales in June when it becomes available in more markets.

Norway, where deliveries of the new Model Y have already begun, is seeing an early sales bump, offering a hopeful sign for Tesla amid mounting competition and internal challenges.