Tesla might lose its automotive business sooner than it wants if European sales are any indication. The EV maker lost steam in 2025 and was surpassed by Volkswagen in a long-anticipated reversal. Tesla sales in Europe dropped 27% in 2025 to 237,000 units, whereas Volkswagen EV sales rose 56% to 274,000 units.

 

After Tesla's sales had declined across all regions, Elon Musk appeared to have lost interest in electric vehicles. This was confirmed most recently when the American carmaker announced the demise of the Model S and Model X. The two veteran EVs have seen low sales for years, which partly explains Tesla's decision to scrap them. However, the Model 3 and Model Y are also on a downward trend.