Tesla is facing a challenging summer in 2025. Despite rising interest in electric vehicles across Europe, the company is experiencing a sharp decline in key markets and simultaneously battling legal challenges in the U.S. that could derail its autonomous taxi ambitions.

📉 Sharp Drop in German Registrations

According to recent data from Germany’s Federal Motor Transport Authority (KBA), Tesla registered only 1,110 vehicles in July, marking a drop of over 55% compared to the same month in 2024. From January to July, Tesla sold just 10,000 cars in Germany — down almost 58% year-over-year.

Even the launch of the upgraded Model Y failed to reverse the trend. European customers are increasingly turning to competitors — for example, Chinese brand BYD registered 1,126 vehicles in July, a fivefold increase compared to the previous year.

🧠 Tesla Bets on Cameras and AI While Rivals Scale Back

As companies like GM reduce their autonomous vehicle ambitions due to high component costs and regulatory scrutiny, Elon Musk remains committed to his vision of driverless transport. Tesla relies solely on cameras and artificial intelligence, unlike competitors such as Waymo and Zoox who use expensive radar and lidar technology.

In June, Tesla launched a limited beta of its Robotaxi service in Austin, deploying a dozen Model Y SUVs with safety drivers onboard. Musk aims to make this service available to half of the U.S. population within five months, but regulatory barriers are slowing progress.

⚖ Florida Verdict Grants $243M in Damages

A recent Florida court decision may further delay Tesla’s Robotaxi rollout. A jury awarded $243 million to the families of two victims involved in a 2019 crash with a Model S operating on Autopilot. The verdict concluded that Tesla’s system was defective and contributed to the fatal outcome.

Tesla argued the crash resulted from driver error, stating the driver was reaching for a dropped phone. Nonetheless, the verdict triggered federal investigations and more lawsuits. Regulatory agencies in California, Nevada, and Arizona are now reviewing Tesla's applications for autonomous service approvals.

🤖 Autopilot vs. Full Self Driving

Tesla’s standard Autopilot controls speed and lane positioning on highways. The optional Full Self-Driving (FSD) system expands functionality to city streets — handling turns and lane changes. Analysts at Piper Sandler noted that the Florida verdict doesn’t apply to the latest FSD version, but it damages public trust in Tesla’s systems.

While Tesla usually wins or settles lawsuits over its driver-assist systems, this case was different. The Model S ran a STOP sign and collided with a parked Chevy Tahoe, killing two people. The driver claimed he wasn’t warned by the system. The jury found Tesla’s Autopilot at fault.

🕵 Delays, Uncertainty, and Image Damage

Regulatory delays and approval hurdles could push back Tesla’s plans. Legal and industry experts warn that progress may be slow. Gene Munster of Deepwater Asset Management said:

“This verdict is a stain on Tesla’s image. Regulators will now be even more cautious.”

🔚 Summary

Tesla finds itself caught between falling sales in Europe, mounting competition from China, and legal setbacks in the U.S. that are jeopardizing its leadership in autonomous transport. How quickly the company adapts will become clear in the second half of the year.

#Tesla , #ElonMusk , #ROBOTAXI , #AI , #worldnews

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