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Tesla’s vehicle registrations in Portugal dropped steeply in July, falling 48.5% compared to the same month last year. According to data released on Friday by the country’s automobile industry association ACAP, the electric carmaker registered only 284 new cars during the month. This sharp decline comes at a time when the overall market for light electric vehicles in Portugal is growing, up about 9.5% in July.
The sales slump appears to be more than a one-month dip. For the first seven months of 2025, Tesla’s new vehicle registrations in Portugal fell 27.4% to 4,372 units. In contrast, the broader market for electric cars in the country increased by 27.2% over the same period. The gap between Tesla’s performance and the overall EV sector highlights a clear loss of momentum for the American carmaker in this region.
Several possible factors may be influencing this trend. Rising competition from other automakers offering more affordable or locally supported models could be one reason Tesla is losing market share. Chinese and European electric brands have been gaining traction across Europe, and consumers may now be looking for new alternatives with better pricing or features tailored to regional needs. Additionally, Tesla has faced growing criticism over delivery delays and customer service issues in some parts of Europe, which may also be affecting buyer confidence.
While Tesla remains a dominant name in the global EV market, these figures show that it is not immune to regional setbacks. The fact that its sales are falling while the Portuguese EV market continues to expand raises concerns about how well Tesla is adapting to shifting dynamics in different countries. It could also indicate the beginning of a broader trend in Southern Europe, where affordability and local incentives play a significant role in consumer decisions.
Unless Tesla makes quick adjustments to its strategy, pricing, or market positioning in Portugal, it risks falling further behind competitors in a country that is showing growing enthusiasm for electric mobility.