Tesla's troubles in Europe are getting worse. According to data from the European Automobile Manufacturers Association (ACEA), Tesla's electric vehicle registrations in Europe (which can be used as a sales reference indicator) were only 6,964 units in October, a 48.5% plunge from the same period last year. Meanwhile, overall EV registrations in the region, which includes the UK and EFTA countries, rose 32.9% in October, while total registrations for all cars regardless of power type also rose 4.9%.
October's sales figures mark Tesla's 10th consecutive month of declining sales in Europe. Furthermore, the overall share of EVs in the automotive market across the European region has risen to 16.4%.
Tesla's sales decline continues in some key European markets. Although the new Model Y has been launched, it is still not enough to offset the negative impact of increased competition and the sluggish popularity of CEO Elon Musk.
The October sales slump follows Tesla's 2025 annual performance already showing weakness across Europe.
ACEA data shows that Tesla's sales in Europe fell 29.6% to 180,688 vehicles in the first 10 months of this year; its overall share of the European car market also fell to 1.6% from 2.4% last year.
Meanwhile, Tesla's main rival in China, BYD, which sells both pure electric and hybrid vehicles, reported a 207% surge in sales in Europe in October, to 17,470 vehicles. Sales in Europe of SAIC, another major Chinese rival, also rose 46% to nearly 24,000 vehicles.
While falling sales in Europe, a key EV-centric market, should be cause for concern, it has yet to have a major impact on Tesla's stock price.
Tesla shares soared nearly 7% on Monday. Previously, Melius Research listed Tesla as a "must-hold stock" due to Tesla's efforts in the field of autonomous driving and CEO Elon Musk's positive statements on the company's chip manufacturing progress.
Analyst Rob Wertheimer wrote in a report: "Despite all the obvious risks, one of the reasons why we listed Tesla as a 'must hold' in our recent report is that the world is about to change significantly. Self-driving technology is coming soon and will completely change the entire driving ecosystem."
The main reason for the sales decline seems to be related to Tesla's latest version of Full Self-Driving (FSD) software - which is currently only available in the United States and some specific regions.
Although investors hold Tesla stock mainly for its artificial intelligence (AI) and autonomous driving potential, European consumers may be in for good news from the autonomous driving field.
The Dutch Vehicle Authority (RDW) said it has set a timetable to allow Tesla to demonstrate whether its FSD system meets relevant requirements in February next year, but it has not yet approved the system for implementation in the Netherlands.
Gaining approval for FSD from at least one European automotive regulator would be a major step in the right direction for Tesla and could help it stem declining sales in the European market.