Tesla (NASDAQ: TSLA) is experiencing a significant drop in sales across Scandinavia and France, as brand loyalty weakens following CEO Elon Musk’s political involvement. The EV giant, once dominant in Norway, Sweden, and Denmark, has lost ground to competitors such as Volkswagen and Toyota, according to new registration data.
Tesla’s Sales Plunge in Key European Markets
Tesla registrations have dropped dramatically in February compared to last year:
- Sweden: 613 new Tesla registrations (down 42% year-over-year)
- Norway: 917 registrations (down 48%)
- Denmark: 509 registrations (down 48%)
- France: Tesla registrations fell 45% over the first two months of 2025
Despite growing demand for electric vehicles (EVs) in these countries, Tesla’s share of overall car sales has slipped. In Norway, where nearly all new cars are electric, Tesla’s market share has dropped from 20% in 2023 to 8.8% year-to-date.
Political Controversy Sparks Backlash
Musk’s high-profile political engagements, including endorsing far-right views in Europe and supporting sweeping U.S. federal workforce cuts, have led to mounting criticism. The backlash has fueled the “Tesla Takedown” protests across the United States and boycott calls in Europe, further impacting brand perception.
In France, Tesla’s Model Y, which was the best-selling EV in 2024, has dropped to 27th place in 2025, losing ground to rivals like Peugeot 208, Renault 5, and Citroen e-C3. The shift highlights growing consumer preference for local and alternative EV brands over Tesla.
Tesla’s Market Challenges in Europe
The ongoing decline in Tesla’s European market share reflects a mix of stronger competition, changing consumer sentiment, and political headwinds. With Volkswagen and Toyota gaining ground, Tesla will need to recalibrate its strategy to maintain its position in the rapidly evolving EV landscape.
