After a turbulent start to 2025, Tesla is showing signs of a turnaround in Europe.
Teslarati reported that, according to Carup data, electric vehicle registrations in June surged across the United Kingdom, Spain, and the Netherlands, where Tesla not only regained lost ground but also topped EV sales charts for the month.
In the U.K., registrations shot up 224% month-over-month. In Spain, they more than tripled. Tesla even became the top-selling overall car brand in the Netherlands. This marks a market-wide EV victory.
This rebound marks a significant moment for Tesla, which has struggled to maintain its grip on global EV dominance. Earlier this year, Tesla’s first-quarter revenue dropped 9%, with its auto revenue falling 20% and net income plummeting 71% year over year.
Analysts have pointed to Tesla CEO Elon Musk’s increasingly polarizing rhetoric as a contributing factor to lagging U.S. performance.
So, what’s driving this comeback in Europe? The recent ramp-up in Model Y availability likely played a key role. The popular EV was largely absent from the European market during Q1, but its return appears to have reignited consumer demand.
In Sweden, Tesla still faced year-over-year declines in June, but it grew market share by 72% from May, to 8.6% total, and now ranks as the fourth-largest EV brand in the country, per Carup.
For consumers, these gains could signal future price drops or availability boosts across Europe as Tesla leverages economies of scale. That could make it easier and more affordable for people to get behind the wheel of an electric vehicle. This is a win for drivers and for the environment, since EVs produce no tailpipe pollution.
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Whether this sales momentum is enough to offset the headwinds that Tesla faces in the U.S. remains to be seen. With new challenges surrounding its self-driving technology, brand perception, and mounting competition, the automaker still has plenty to prove.
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