Tesla Inc.’s sales momentum in Europe showed fresh signs of weakness as official data from two key markets pointed to steep declines in new vehicle registrations for July. In Sweden, registrations of new Tesla cars fell 85.8% year on year, according to figures released by industry association Mobility Sweden. The sharp contraction follows months of labor-related disruptions at the company’s local service operations and heightened competition from Chinese electric-vehicle brands. Italy’s Transport Ministry reported that Tesla registrations declined 4.99% in July from a year earlier and were down 34.74% for the first seven months of 2025 compared with the same period in 2024. The slump adds to evidence that demand for the U.S. automaker’s models is cooling in parts of Europe despite successive price cuts this year.