Tesla’s dominance in the European electric vehicle (EV) market is showing cracks as February sales data from multiple countries indicate a steep decline. Despite robust EV adoption across Scandinavia and France, Tesla’s market share is slipping significantly, raising concerns about the brand’s future in key regions.
Tesla Sales Drop Across Scandinavia
Norway: Market Share Crumbles in the World’s EV Leader
Norway, a global leader in EV adoption, saw EVs account for an astounding 94.7% of total new car sales in February. However, Tesla’s performance sharply declined. According to the Opplysningsrådet for veitrafikken (OFV), Tesla registrations were halved compared to February 2024, marking a 44.4% drop in year-to-date sales. With just 917 Tesla vehicles sold, the brand fell behind Volkswagen, which surged to 1,323 sales.
Sweden: Tesla Model Y Takes a Hit
Sweden’s battery EV market continued to expand, making up 31.9% of new car sales in February. Yet, Tesla sales saw a steep 42% decline year-over-year, with the Model Y—a past market leader—dropping by 52.1%.
Denmark: Tesla Sales Cut in Half
In Denmark, the EV sector grew significantly, with 65% of all February sales being electric, a 72% increase over last year. However, Tesla’s registrations fell by 48% to just 509 units, showing a stark contrast between overall EV growth and Tesla’s fading momentum.
France: Tesla Slips as Local Brands Surge
In France, electrified vehicles made up 22% of total new car sales, slightly lower than February 2024’s 26%. Tesla’s situation was even bleaker, with only 2,395 units sold in February—a 26% decline from last year. Year-to-date sales tell an even grimmer story, down 44% compared to the same period in 2024. The Model Y, once the country’s top EV, plummeted in ranking to the 27th most popular car, falling behind competitors like the Peugeot 208, Renault 5, and Citroën e-C3.
Broader European Trends Confirm Tesla’s Decline
Data from the European Automobile Manufacturers’ Association (ACEA) further underscores Tesla’s struggles. In January, the company sold just 9,945 units across Europe, marking a 45% year-over-year drop. This slump is particularly concerning as the broader EV market surged by 37% during the same period.
Schmidt Automotive Research, a leading EV market analyst, has pointed out that Tesla’s declining sales are more than just a temporary inventory issue. The brand’s recent struggles coincide with growing competition from European automakers and increasing backlash against CEO Elon Musk’s controversial public statements and political affiliations.
What’s Driving Tesla’s Decline?
While some believe the downturn is due to inventory adjustments and anticipation for the refreshed Model Y, others argue that Tesla’s slipping influence is a symptom of deeper issues. The rise of homegrown European EV brands, shifting consumer preferences, and Musk’s political controversies are all factors that could be steering potential buyers toward alternative options.
As the European EV market continues to thrive, Tesla’s ability to recover and maintain its position will depend on its ability to address these challenges and win back consumer trust.
