07.41 BST Introduction: Tesla’s EU sales slumped in May despite EV market growth

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Tesla’s sales across Europe are continuing to slide, even as demand for electric cars rises.

The latest car sales data, just released, shows that Tesla sold 8,729 vehicles across the European Union last month, down from 14,682 in May 2024. That’s a 40.5% drop, which shrinks Tesla’s market share from 1.6% to 0.9%.

Tesla’s shares have been sliding across Europe through 2026, a decline blamed on CEO Elon Musk’s political activities, the company’s outdated model lineup, and competition from rivals such as China’s BYD.

Musk’s high-profile blow-up with president Trump, at the start of June, came too late to affect today’s data. Tesla will be hoping that its updated Model Y model, which was expected to roll out in Europe this month, can reverse the sales slump.

Overall, sales of electric cars rose by 25% last month – with 142,776 battery electric cars sold, up from 114,231 in May 2024.

ACEA, the industry body that collates the data, reports:

Up until May 2025, battery-electric cars accounted for 15.4% of the total EU market share, an increase from the low baseline of 12.1% in May 2024 YTD.

Hybrid-electric car registrations continue to surge, capturing 35.1% of the market, remaining the preferred choice among EU consumers.

Meanwhile, the combined market share of petrol and diesel cars fell to 38.1%, down from 48.5% over the same period in 2024.

The overall European car market grew by 1.6% in May, year on year, but is down 0.6% during 2025.

A chart showing European car sales in June 2025 Illustration: ACEA

The agenda

10am BST: Treasury committee hearing on the spending review, with Darren Jones MP, Chief Secretary to the Treasury

Noon BST: US weekly mortgage approvals data

3pm BST: US new home sales data for May

3pm BST: Federal Reserve chair Jerome Powell’s second day of testimony to Congress