Registrations of new Tesla cars in key European markets dropped in July, facing backlash against CEO Elon Musk’s political views and rising competition. Sales fell in Sweden, Denmark, France, Netherlands, Belgium, Italy, and Portugal, but rose in Norway and Spain. Spain saw a 155% increase in total sales of electrified cars.

Tesla struggles with competition from low-cost EV rivals, particularly from China. Sales dropped over a third in Europe in the first half of the year. With no affordable-end vehicles until the end of the year and the end of a $7,500 U.S. tax break for EV buyers, Tesla anticipates “a few rough quarters.”

Tesla faced challenges with automated driving regulations in Europe hindering Model Y sales. Musk acknowledged the difficulties and expressed optimism for improved sales once European customers have a similar experience as in the U.S. Tesla began selling a long-range four-wheel version of the revamped Model Y in Europe in March 2025.

Overall car sales varied in July across Europe, with increases in Denmark, Sweden, Norway, Spain, the Netherlands, and Portugal, but decreases in France, Italy, and Belgium. Germany and the UK are yet to release July car sales. European automakers are experiencing pressure from U.S. import tariffs and falling demand.

Read more at Yahoo Finance: Tesla sales drop again around Europe despite Model Y revamp