After struggling through the first half of 2025, Tesla’s showing signs of recovery in Spain with July sales jumping 27% compared to last year. The electric car maker delivered 702 vehicles last month, helping fuel a massive 155% surge in electrified vehicle sales across the country.
Tesla’s bounce back comes after a rough start to the year. The company sold just 6,468 cars in Spain during the first six months of 2025, down 36% from the same period in 2024. Supply chain problems and other challenges hit the automaker hard early in the year. For the first seven months of 2025, Tesla’s sales increased by 1.1% compared to 2024, showing a gradual recovery.
The Model Y and Model 3 are driving Tesla’s Spanish comeback. In June, the Model Y sold 1,179 units, more than doubling its sales from a year earlier with a 127% increase. The Model 3 wasn’t far behind, with 1,451 units sold, up 31% from June 2024. These two models made up nearly all of Tesla’s Spanish sales that month.
While Tesla’s recovering, its competitors are racing ahead even faster. Other car companies are using local production facilities and government subsidies to offer lower prices. Volkswagen, BMW, and other brands are scaling up their electric vehicle production to grab market share from Tesla. Tesla’s higher upfront costs compared to gasoline vehicles may be driving Spanish consumers toward more affordable electric alternatives from competitors.
Spain’s electric vehicle market is growing rapidly but still trails other European countries. Norway leads the way with EVs making up 93.7% of all car sales in the first half of 2025. In comparison, Spain’s including hybrids and plug-in vehicles in its “electrified” category, which makes the growth numbers look bigger than pure EV sales alone. Meanwhile, Denmark’s new electric car sales jumped 47% in the first half of 2025, reaching 57,171 units.
Tesla’s refreshed Model Y and Model 3 designs appear to be winning back customers after the early-year slump. But the company faces tough competition as more affordable electric cars flood the market. Price-sensitive Spanish buyers now have many options beyond Tesla’s premium-priced vehicles.
The July sales figures suggest Tesla’s weathering the storm in Spain. Yet with rivals expanding quickly and offering cheaper alternatives, the American automaker will need to keep innovating to maintain its position in Europe’s fast-changing electric vehicle market.