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Tesla’s vehicle sales in Italy continued to slide in July, marking the third consecutive month of decline. According to data published by the Italian transport ministry on Friday, the American electric carmaker registered only 457 new cars during the month, down 5% compared to the same period last year. While Tesla’s overall volume in Italy is relatively low and often subject to monthly fluctuations, the consistent downward trend is now starting to stand out.
From January to July 2025, Tesla sold a total of 6,925 new vehicles in Italy. This figure reflects a sharp 35% drop from the same seven-month period in 2024. This steep year-on-year decline suggests weakening demand for Tesla in the Italian market, even as the broader European EV industry continues to evolve and expand. Italy, while not Tesla’s largest market in the EU, has typically seen stable sales thanks to interest in Model 3 and Model Y. But those numbers appear to be softening considerably this year.
Several factors may be contributing to the decline. Rising competition from other electric vehicle manufacturers, including both European and Chinese brands, is reshaping consumer preferences. Additionally, some of Italy’s local EV incentives and subsidies have been reduced or revised, which could be affecting buyer behaviour. Inflationary pressures and concerns around charging infrastructure in smaller cities may also be playing a role.
Tesla has not issued any formal comment in response to the new data. The company is already under close watch in European markets where it’s battling price wars, shifting regulations, and changing consumer sentiment. The drop in Italy adds to a growing list of markets where Tesla is now being forced to reassess demand forecasts and potentially rework its strategy.
While one market alone may not drastically affect Tesla’s global performance, sustained declines in regions like Italy can indicate deeper regional problems, especially if the trend spreads to other Southern European countries. With nearly half the year remaining, Tesla will be under pressure to stabilise its performance and regain momentum in the Italian EV segment.