Data released on Thursday showed that despite strong demand for all-electric vehicles in Europe, Tesla's sales in the region continue to decline. According to figures published that day by the European Automobile Manufacturers' Association (ACEA), Tesla's electric vehicle registrations in Europe fell approximately 23% year-on-year in August, marking the eighth consecutive month of decline.

Last month, Tesla's vehicle registrations in Europe totaled 14,831 units, down from 19,136 units in August 2024. ACEA stated that in the first eight months of this year, Tesla's registrations in Europe have dropped by 32.6%.

Meanwhile, total electric vehicle registrations in Europe through August increased by about 26% compared to the same period in 2024. In contrast, registrations of gasoline and diesel-powered vehicles fell by more than 20% during this period.

Despite this, analysts at RBC wrote in a report on Thursday that they expect Tesla’s total deliveries in the third quarter may reach 456,000 units, higher than the consensus estimate of 448,000 deliveries compiled by FactSet and also above the Visible Alpha consensus of 440,000 deliveries.

The analysts anticipate that Tesla's sales will get a boost as U.S. consumers rush to buy electric vehicles before the $7,500 federal tax credit expires at the end of September.

Although Tesla's stock fell on Thursday, it has rebounded significantly after a dismal start to the year. After plunging 36% in the first quarter, Tesla's share price has risen about 10% year-to-date.

Elon Musk’s political activities in the U.S. and other regions have damaged the Tesla brand and reduced its appeal to many potential electric vehicle buyers.

In an effort to revive interest in the brand, Tesla has said it is developing an affordable new model, which could help it fend off increasing competition from EV makers such as Volkswagen and BYD, who are steadily gaining market share.