Tesla Is Losing Ground in Europe: Sales Are Plummeting Despite the Electric Vehicle Boom

2 January 15:35

The American electric vehicle manufacturer Tesla is ending 2025 in Europe with a sharp drop in sales in key markets— despite an overall increase in demand for electric cars.

This is evidenced by data from the European Automobile Manufacturers Association, cited by Bloomberg , reports "Komersant Ukrainian".  

Over the first 11 months of 2025, Tesla’s sales in Europe fell by 28%, while total EV registrations in the region rose by 27%.

The sharpest declines were recorded in certain national markets:

  • France:
    • only 1,942 vehicles were registered in December,
    • a 66% year-over-year decline.
  • Sweden:
    • Sales in December fell by 71%,
    • and by year-end, they were down 67%.

An exception to the trend

Against this backdrop, Norway stood out as a notable exception.

In December, Tesla registered 5,679 vehicles there, nearly 90% more than a year earlier. The country’s electric vehicle market remains one of the most developed in the world— 96% of all new cars sold last year were fully electric.

Analysts attribute the decline in demand for Tesla in most European countries not only to competition but also to political factors.

Some consumers reacted negatively to Elon Musk’s public support for right-wing politicians and parties, particularly in Germany and the UK. According to experts, this dealt an additional blow to the brand’s image in the sensitive European market.

Betting on Autopilot

Musk himself expects the situation to change after the launch of the Full Self-Driving (FSD) driver-assistance system in Europe. However, Tesla has not yet received regulatory approval, without which the full implementation of the technology is impossible.

Tesla’s sales decline comes at a time when the European electric vehicle market is growing overall, and competition from local and Chinese manufacturers is intensifying.

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