After a record-breaking third quarter, things could get bad fast for electric vehicle company Tesla Inc (NASDAQ:TSLA). A new report shows a sharp decline for Tesla vehicle registrations in several key European markets.
• TSLA shares are retreating from recent levels. See the market dynamics here.
Tesla Sales Drop In Europe
Following recent news of sales declines in China, Tesla investors could have bad news with early data out for Europe for the month of October.
Tesla registrations in nine key European countries were down 36.3% year-over-year, according to a report from Electrek.
Here are the nine countries tracked that have released October 2025 registration data:
- Austria: 97 units, -64.5% year-over-year
- Finland: 47 units, -67.6% year-over-year
- France: 1,784 units, +83.7% year-over-year
- Italy: 256 units, -47.1% year-over-year
- The Netherlands: 645 units, -47.9% year-over-year
- Norway: 671 units, -50.2% year-over-year
- Portugal: 144 units, -58.7% year-over-year
- Spain: 393 units, -30.6% year-over-year
- Sweden: 133 units, -88.7% year-over-year
In total, 4,710 units were registered in October across the nine countries. Of the nine countries tracked, only France saw growth on a year-over-year basis.
France could be an outlier, with the country currently providing incentives for low and middle-income people to buy electric vehicles.
For some of the markets tracked above, the October declines and figures were some of the worst for Tesla in 2025.
Overall, Tesla registrations are down over 30% year-to-date in all of Europe to a total of around 177,000, versus 255,000 units over the same time period last year.
Read Also: Tesla Q3 Highlights: Record EV Deliveries, Falling Profits, AI Ambitions Ahead
Q4 Could See Sharp Delivery Declines
After setting records in the third quarter overall and in the U.S. market, Tesla could be in for a rough fourth quarter.
Demand in the U.S. was helped by the expiration of the Federal EV tax credit, which expired on Sept. 30. With the credit gone, consumers may choose not to purchase electric vehicles until more incentives return or prices come down overall.
In Europe and China, Tesla is seeing increased competition from Chinese automakers, who have vehicles with lower starting price points.
Previous data shared by the European Automobile Manufacturers' Association showed Tesla sold 39,837 units in Europe for the month of September, down 10.5% year-over-year.
In contrast, Tesla rival BYD Co. (OTC:BYDDY) (OTC:BYDDF) saw a 398% year-over-year sales gain for the European market in the month of September, with 24,963 units sold. BYD has been expanding into new European territories as the Chinese company looks to grow in the region, a move that could hurt Tesla's market share.
Data from the China Passenger Car Association recently showed Tesla sold 61,497 units in China in October, down 9.9% year-over-year. The data comes after Tesla saw a strong September and October in the country, before demand fell.
Tesla Shares Fall
Tesla stock closed down 5.15% to $444.26 on Tuesday versus a 52-week trading range of $214.25 to $488.54. Tesla shares are up 10.1% year-to-date in 2025.
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