Forty percent. That’s the reduction in Tesla’s European sales for July when compared to the same month last year.

The European Automobile Manufacturers Association (ACEA), the EU’s auto industry advocacy group, published new statistics on Thursday that reveal Tesla, under the leadership of Elon Musk, continues to face a notable drop in sales.

In total, merely 8,837 Tesla vehicles were registered throughout Europe in July 2025, covering the European Union, the United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland.

Furthermore, Tesla’s sales decline is not a result of a general downturn in the electric vehicle market. In reality, electric vehicle sales as a whole have increased within the EU. For example, Tesla’s primary competitor in China, BYD, recorded 13,503 new vehicle registrations in July, marking a 225 percent rise from the previous year, as noted by CNBC.

This signifies Tesla’s seventh successive month of falling sales.

Tesla has also faced decreasing sales within the United States in 2025, although the impending termination of the EV tax credit has temporarily given a boost to electric vehicle manufacturers over the summer.

No resolution in sight for Tesla’s troubles

Tesla’s sales problems began following Musk’s engagement with the Trump administration and its Department of Government Efficiency (DOGE). Musk has also found himself embroiled in other expensive controversies, such as his backing of a far-right party in Germany.

In the month succeeding Musk’s endorsement of the far-right Alternative for Germany (AfD) party, Tesla saw fewer than 900 sales in Germany — nearly a 50 percent decline.

In July, alongside the ongoing sales slump, Tesla also ceased allowing EU customers to configure and purchase specific car models, like the Model S and X. In the U.S., Tesla owners have inundated the market with pre-owned Tesla vehicles.

Under mounting pressure, Musk declared in May that he would be stepping back from his position with the Trump administration, but Tesla’s sales challenges have continued.

Additionally, the president’s Big Beautiful Bill will conclude a crucial source of Tesla’s income: Carbon credits.

Over the last decade, these regulatory credits have generated $11.8 billion in revenue for Tesla.

Lastly, the federal EV tax credit is set to expire on September 30, which will immediately raise the cost of electric vehicles for U.S. consumers.