Tesla's attempts to expand internationally are encountering difficulties. In August 2025, Tesla saw a drop in monthly sales in Europe for the eighth consecutive month. While the overall European auto market grew, French registrations fell 47.3% year over year. Experts blame the decline on growing competition from Chinese automakers, especially BYD and other EV newcomers who have been rapidly expanding their regional deliveries.

In the meantime, Tesla has had trouble making an impression in India. Due to high import taxes, the company's Model Y was introduced in July at a price of about USD 70,000. Only roughly 600 confirmed orders have been placed for the model since its launch, indicating poor demand in one of the automotive markets with the fastest rates of growth in the world.

Tesla is still under pressure from growing tariffs in the US, declining sales in China, and more competitive EV options in Europe. The company's reliance on premium pricing may limit its ability to attract mass-market buyers in emerging regions as competitors reduce prices and broaden their lineups.