Volkswagen Overtakes Tesla as Europe’s EV Leader in H1 2025 Tesla’s Challenges Persist Tesla CEO Elon Musk had earlier promised a “major rebound” in global demand following factory shutdowns for tooling upgrades—largely to accommodate the new Model Y. While Tesla did reclaim the top-selling EV spot for June alone in Europe, it wasn’t enough to offset the earlier slump. Even in June, the company was the only one among the top five to see a sales decline, dropping 21% year-over-year with 32,605 cars sold. In contrast, Volkswagen saw a 9% uptick, BMW rose by 16%, Renault climbed 23%, and Skoda soared by 189% during the same month. Model Y Still Dominates, But It’s Not Enough Despite the overall downturn, Tesla’s Model Y and Model 3 remained the two best-selling EVs in Europe during the first half of the year. They were followed by the Volkswagen ID.4, ID.7, and ID.3—highlighting that while Tesla’s brand still resonates, competition is catching up fast. EV Market Grows, Tesla Shrinks The broader context? The European EV market itself is growing fast. Total EV sales across the region jumped 24% year-over-year, rising from 944,858 units in H1 2024 to 1,177,051 units in H1 2025. So while others are riding the wave, Tesla is swimming against the current. The Road Ahead Tesla’s European stumble underscores a shift in momentum. Legacy automakers like Volkswagen, BMW, Skoda, and Renault are no longer playing catch-up—they’re setting the pace. For Tesla, the next six months will be critical. New model launches, pricing strategies, and production stability will need to come together quickly if the company wants to avoid falling further behind in what is now the world’s most competitive EV market. Tags: