Tesla (TSLA, Financials) continued to lose ground in Europe's fast-growing electric vehicle market, with May marking the fifth straight month of declining sales in the region, according to data from the European Automobile Manufacturers' Association.
New car registrations for Tesla in the European Union dropped 41% in May compared with a year earlier, totaling 8,729 vehicles. Over the first five months of 2025, registrations declined 45% to 50,413 units. Tesla's market share in EU car registrations slipped to 0.9% from 1.6% in the prior-year period.
When combined with markets outside the EU—such as the U.K., Norway, Switzerland, and Iceland—Tesla's total new registrations in May stood at 13,863 vehicles, a 28% year-over-year decline.
Meanwhile, the broader EU battery-electric vehicle market expanded 25% year over year in May, signaling growing consumer demand that Tesla failed to capture.
Tesla shares are little changed in premarket trading. The stock is down nearly 16% year to date.
