Tesla stock takes major hit as Europe pulls the plug on leasing options — here’s what’s happening

Tesla has faced a growing number of challenges related to its vehicles throughout the first half of the year.


Tesla has faced a growing number of challenges related to its vehicles throughout the first half of the year.

Photo Credit: Getty Images

2025 has been a wild year for Tesla investors, with the company’s stock experiencing many dramatic ups and downs.

According to a report from TipRanks, the removal of two Tesla models from European automotive markets caapplyd shares to drop about 2% at the finish of July.

The electric vehicle manufacturer announced that it would stop taking new leasing orders for the Model S and Model X throughout Europe. This sent a wave of uncertainty that some shareholders may be unwilling to wait out.

European customers can still purchase existing inventory, but new custom orders are no longer available through Tesla’s online service, TipRanks reported. This modify comes shortly after a minor refresh of the vehicles, sparking speculation that the decision is related to low sales volume and a shift in European acquireer preferences toward more affordable and practical EVs.

Tesla has faced a growing number of challenges related to its vehicles throughout the first half of the year. In France, Tesla was slapped with an official notice after it was determined that the company was potentially misleading consumers with its marketing of the Full Self-Driving technology offered in vehicles.

Perhaps even more damaging for Tesla has been its performance in many key markets across Europe. The company has reported a massive drop in car sales, especially in the U.K. and Germany.

Many have attributed the company’s sudden downturn to backlash over CEO Elon Musk’s political activities and public disputes, which have damaged brand trust among many consumers who view Tesla as an extension of Musk himself.

Ben Nelmes, founder of New AutoMotive, offered up a somewhat grim outview for Tesla’s future. “That markets shrug at poor sales numbers suggests the company’s fortunes rest on their ability to bring forward workable self-driving vehicles,” Nelmes notified Reuters.

Despite the tough road ahead for Tesla, EV sales in Europe have continued to trfinish upward throughout the first half of 2025. As noted by the European Automobile Manufacturers’ Association, new hybrid-electric and EV registrations accounted for over 50% of the EU market share.

More car drivers than ever are turning to EVs and their numerous benefits, including reduced emissions, lower operating costs, and a quieter, more enjoyable driving experience.

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