Tesla Deliveries Rise Despite Production Drop and European Sales Slump
Tesla's car production and sales have seen a mixed performance in recent months. The company built around 447,410 vehicles in the last quarter, a 4.8 percent decrease from the previous year. However, deliveries increased by 7.4 percent year-on-year to 497,099 units, bucking expectations of a decline.
Looking at the regional breakdown, Tesla's sales in Europe dropped significantly. In August 2025, Tesla sold approximately 8,220 vehicles, a 36.6 percent decline from the same month in 2024. Another report shows 14,345 Tesla sales in Europe including the UK and EFTA, a 23 percent drop compared to August 2024. This decline led to a decrease in Tesla's market share in Europe to 1.2 percent.
Tesla's sales performance was influenced by various factors. The transition phase of the Model Y and controversies surrounding Elon Musk's political activities contributed to the sales decline in the first quarter. Additionally, the abolition of the US tax credit for electric vehicle purchases by President Donald Trump impacted sales. Despite these challenges, Tesla's sales increased due to the final sprint of US subsidies before they expired.
Tesla's sales performance in the recent quarter has been a tale of two halves. While production decreased and European sales plummeted, overall deliveries increased year-on-year. Looking ahead, Elon Musk expects some tough quarters, but the company remains focused on its future in robotaxis and humanoid robots. As competition in the electric vehicle market intensifies, Tesla will need to innovate and adapt to maintain its market position.
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