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Tesla’s new car sales in Europe plunged 27.9% in May, even as the region saw a major rise in demand for electric vehicles, data from the European Automobile Manufacturers Association (ACEA) showed.
Tesla is struggling to keep up with Europe’s electric vehicle boom. In May 2025, the U.S. carmaker saw its new car sales drop nearly 28% compared to a year earlier, even as fully-electric vehicle sales in the region jumped by 27.2%.
The decline marks Tesla’s fifth consecutive month of falling sales in Europe. Industry analysts point to increased competition from cheaper Chinese EVs and backlash over CEO Elon Musk’s public statements as reasons behind the slump.
Tesla’s market share in Europe has now shrunk to just 1.2%, down from 1.8% in May 2024. Hopes that the refreshed Model Y would boost the company’s appeal haven’t yet materialized.
Meanwhile, overall car sales in the European Union, Britain, and the European Free Trade Association rose by 1.9% in May to 1.11 million vehicles, led by strong demand for plug-in hybrids and alternative-fuel vehicles.
Battery-electric vehicle (BEV) registrations rose 26.1%, plug-in hybrids (PHEVs) by 15%, and hybrid-electric vehicles (HEVs) by 19.8%. Combined, these types of vehicles made up nearly 59% of all new car sales in the EU, a jump from just under 49% a year earlier.
Among individual automakers, China’s SAIC Motor and Germany’s BMW posted growth of 22.5% and 5.6%, respectively. Japan’s Mazda saw a steep decline of 23%.
Regionally, Spain and Germany reported increases in new car sales of 18.6% and 1.2%, while France and Italy experienced drops of 12.3% and 0.1%. The UK saw a modest gain of 1.6%.
Despite Tesla’s downturn, the shift toward electrification in Europe shows no signs of slowing.
Japan has lifted a tsunami advisory issued after an earthquake with a magnitude of 6.9 hit the country's northeastern region on Friday (12 December), the Japan Meteorological Agency (JMA) said. The JMA had earlier put the earthquake's preliminary magnitude at 6.7.
Iran is preparing to host a multilateral regional meeting next week in a bid to mediate between Afghanistan and Pakistan.
The United States issued new sanctions targeting Venezuela on Thursday, imposing curbs on three nephews of President Nicolas Maduro's wife, as well as six crude oil tankers and shipping companies linked to them, as Washington ramps up pressure on Caracas.
The resignation of Bulgaria's government on Thursday (11 December) puts an end to an increasingly unpopular coalition but is likely to usher in a period of prolonged political instability on the eve of the Black Sea nation's entry into the euro zone.
An extratropical cyclone has caused widespread disruption across Brazil’s São Paulo state, with powerful winds toppling trees and power lines, blocking streets and leaving large parts of the region without electricity.
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75% following its two-day policy meeting, according to an official statement issued on Wednesday, 10 December.
China has carried out a major test of a new “super wireless” rail convoy, a technology that could reshape the future of heavy-haul transport.
Paramount Skydance (PSKY.O) has launched a $108.4 billion hostile takeover bid for Warner Bros Discovery (WBD.O). The escalation follows a high-stakes battle that had appeared to end last week when Netflix secured a $72 billion deal for the studio giant’s assets.
U.S. industrial production rose by 0.1% in September, rebounding after a decline in August, while capacity utilisation remained unchanged, according to Federal Reserve data on Wednesday.
Google’s YouTube has announced a “disappointing update” for millions of Australian users and creators, confirming it will comply with the country’s world-first ban on social media access for under-16s by locking affected users out of their accounts within days.
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