2025 has been an interesting year for Tesla investors. With tremendous highs and lows, the company’s stock has experienced something of a roller coaster ride. After its most recent slide, experts are now sounding the alarm.
As reported by CNBC, Tesla stock fell by more than 4% on Sept. 24 following the release of new vehicle registration data out of Europe that confirmed the company’s ongoing sales struggles. As the electric vehicle manufacturer continues to experience difficulties, its direct competitors have enjoyed a significant bump in interest from car buyers.
According to a report from the European Automobile Manufacturers’ Association, Tesla’s EV registrations in Europe fell by over 22% year over year this August, with 14,831 units registered. That is down from the 19,136 registrations Tesla recorded in August 2024.
This marks the continuation of a concerning trend for Tesla. For the first eight months of 2025, the company’s car sales in Europe are down 32.6% to 133,857 units, representing a significant decline in its market share. In fact, it’s one of the largest declines of any major automaker in all of Europe, trailing just Lancia/Chrysler.
Tesla’s sales slump hasn’t just been limited to Europe. The company’s performance has also been dragged down by a steep decline in the U.S. and Canada. This has caused Tesla’s share of the global EV market to shrink significantly, mainly due to increasing competition and a lack of new, affordable models offered by the company.
The rise of intense competition stems from rival automakers such as General Motors and Hyundai as well as rising Chinese brands like BYD. Through August, BYD has seen over a 280% year-over-year increase in new car registrations in Europe.
This has been accompanied by Tesla’s hesitation to roll out cheaper vehicles and its highly publicized commercial flop with the Cybertruck. A number of potential car buyers have also noted Tesla CEO Elon Musk’s political ties and the rising number of controversies as a deterrent to considering the EV brand. This could eventually delay our progress in reducing our reliance on planet-heating fossil fuels by discouraging drivers from making the switch to EVs.
In early September, Tesla announced its Master Plan Part IV, which outlines a vision for achieving “sustainable abundance” by utilizing its expanding artificial intelligence and robotics technology. Tesla has pushed its goal to integrate AI into its extended offering of products and services, including autonomous vehicles and humanoid robots.
