Tesla Inc (NASDAQ:TSLA) is seeing weakening sales momentum in its three most important markets – the US, Europe, and China – amid global competition in the EV sector accelerates and as new product introductions remain limited.
In Europe, Tesla sales fell sharply in October, dropping 48.5% year-over-year, according to figures released by the European Automobile Manufacturers’ Association.
Despite expanding EV adoption across the region, with industry sales up 26% in the month, Tesla’s year-to-date volumes are down roughly 30%.
Rival manufacturers, including BYD and Volkswagen, have been expanding their EV ranges and offering more models at lower price points, a shift analysts say is capturing market share from Tesla as choice and affordability grow in importance for new buyers.
China, the world’s largest EV market, has also become more competitive. Tesla sales there have declined 8.4% year-over-year through October, reflecting pressure from established domestic brands and newer EV entrants.
Local manufacturers have accelerated product launches and pricing strategies in recent months, contributing to a more challenging environment for foreign automakers.
In the US, Tesla’s home market, sales fell 24% in October, in part driven by the expiration of a federal electric-vehicle tax credit in late September, which contributed to a short-term pull-ahead in demand ahead of the deadline.
Tesla recorded strong third-quarter deliveries ahead of the incentive change, but order momentum softened afterward.
Global vehicle deliveries are projected to fall about 7% in 2025, according to Visible Alpha estimates, following a 1% decline in 2024. This outlook contrasts with Tesla’s previous expectations for renewed delivery growth, with CEO Elon Musk telling shareholders he expected vehicle sales to grow 20% to 30% in 2025.
More recent company statements suggest that future performance may depend on macroeconomic conditions, production capacity, and progress on autonomous-driving integration.
