Despite robust electric vehicle demand across Europe, Tesla (TSLA.US) continues to experience declining sales across multiple markets. The German Federal Motor Transport Authority announced Wednesday that Tesla's new vehicle registrations in Germany dropped 39% last month, with an even steeper 56% plunge in the first eight months of this year. The automaker led by Elon Musk also witnessed significant sales declines in France, Belgium, Denmark, and Sweden during August. Norway stands as an exception, where Tesla's sales grew 21% last month and increased 26% year-to-date.

Tesla's performance in major European electric vehicle markets contrasts sharply with the overall market trend. In the first half of this year, Tesla's global vehicle deliveries fell 13%, indicating the company may face a second consecutive year of annual sales decline. While anticipated momentum from U.S. consumers accelerating purchases before federal tax credits expire is expected to boost Tesla's performance this quarter, such gains may be constrained by weak sales in Europe and China.

In Germany, industry-wide pure electric vehicle registrations surged 46% in August, demonstrating that electric vehicle sales maintain strong growth momentum despite Tesla's struggles. Across Europe, pure electric vehicle sales increased 26% in the first seven months of the year, while Tesla's sales declined 40% during the same period.