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Core Viewpoint - Tesla is facing significant challenges in the European market, with a sharp decline in sales and legal issues related to its autonomous driving technology [1][4][7]. Sales Performance - In July, Tesla's sales in Europe saw a nearly universal decline, with a 60% drop in the UK, over 55% in Germany, and significant decreases in France, Sweden, Belgium, and Italy [1][4]. - Tesla's sales in Europe for the first half of 2025 were reported at 108,900 units, a year-on-year decline of 33%, resulting in the loss of its title as the best-selling electric vehicle manufacturer in Europe to Volkswagen, which saw a 78% increase in sales [4]. - In Germany, Tesla's sales in July were recorded at 1,110 units, down 55.1% year-on-year, and a total of 10,000 units for the first seven months, a drop of 57.8% compared to the previous year [4]. - In the UK, Tesla's registrations fell from 2,462 units last year to 987 units in July, marking a 60% decline [4]. - Despite the overall downturn, Tesla experienced sales growth in Spain (27% increase) and Norway (83% increase) in July [5]. Legal Issues - Tesla and Elon Musk are facing lawsuits from shareholders who accuse them of securities fraud for allegedly concealing significant risks associated with the company's autonomous vehicles, including the Robotaxi [2][7]. - During the initial public testing of Robotaxi, several safety issues were reported, including speeding and erratic driving behavior, prompting inquiries from the National Highway Traffic Safety Administration (NHTSA) [8]. - Tesla has claimed that its responses to safety concerns are confidential business information, which has led to further scrutiny and legal challenges [8][9]. - The California Public Utilities Commission (CPUC) has halted Tesla's expansion of its Robotaxi service, citing the lack of necessary permits for operating autonomous taxi services [9].