Tesla’s dominance in the European electric vehicle (EV) market continues to erode as February sales figures reveal a significant drop across key markets, including Norway, Sweden, Denmark, and France. Despite an overall increase in EV adoption, Tesla’s market share has taken a hit, raising concerns about the company’s future positioning in the region.
Tesla’s Sales Plummet Across Scandinavia and France
- Norway: Declining Market Share Despite EV Boom
Norway remains a global leader in EV adoption, with electric vehicles accounting for a staggering 94.7% of all new car sales in February. However, Tesla’s sales plunged by 50% year-over-year, with only 917 registrations compared to 1,778 in February 2024. Meanwhile, Volkswagen surged ahead, selling 1,323 vehicles, up from just 594 last year. - Sweden: EV Sales Climb, Tesla Sales Drop
In Sweden, battery electric vehicles made up 31.9% of new car sales in February, with nearly 70% of total sales coming from electrified vehicles. However, Tesla’s sales fell by 42%, with the Model Y experiencing a dramatic 52.1% decline. - Denmark: Market Growth Overshadows Tesla’s Struggles
Denmark’s EV market saw a remarkable 72% year-over-year growth, with 7,734 EVs sold in February, making up 65% of all new car sales. Yet, Tesla’s new registrations dropped by 48%, with only 509 units sold, highlighting its declining appeal. - France: Tesla Falls Behind Local EV Brands
While France’s EV market saw modest performance, with electrified vehicles accounting for 22% of total new car sales, Tesla’s decline was stark. Only 2,395 Tesla vehicles were sold in February, marking a 26% drop from the previous year. Year-to-date figures show an even steeper 44% decline, as Tesla’s once-best-selling Model Y fell to the 27th spot, behind popular European EVs like the Peugeot 208 and Renault 5.
Possible Reasons Behind Tesla’s Decline
- Increased Competition from European Automakers
European brands such as Peugeot, Renault, and Volkswagen have aggressively expanded their EV lineups, offering competitive pricing and local brand loyalty advantages. - Elon Musk’s Controversies Impacting Brand Image
Tesla’s declining reputation in Europe is partly linked to CEO Elon Musk’s political affiliations and controversial statements. His support for far-right political figures has led to backlash, protests, and a drop in consumer sentiment, potentially influencing Tesla’s declining sales. - Inventory Issues and Model Refresh Delays
Some analysts argue that Tesla’s dip could be due to inventory fluctuations and anticipation of the refreshed Model Y. However, with consistent declines reported across multiple months, this explanation is becoming less convincing.
Tesla’s Challenges Amid a Growing EV Market
Despite Tesla’s declining sales, the European EV market continues to grow. Figures from the European Automobile Manufacturers’ Association (ACEA) revealed a 37% increase in overall EV sales in January 2025, while Tesla’s sales for the month dropped 45% compared to the previous year.
Additionally, new insights from Schmidt Automotive Research suggest that Tesla’s struggles are more than a temporary setback, emphasizing that the brand’s decline is becoming a long-term trend rather than an isolated slump.
Looking Ahead: Can Tesla Regain Its Foothold?
Tesla faces an uphill battle in Europe as competitors strengthen their presence, and the company grapples with reputational challenges. To recover lost ground, Tesla may need to focus on localized strategies, competitive pricing, and rebuilding consumer trust.
While Tesla remains a significant player in the EV industry, its shrinking influence in key European markets signals the need for strategic recalibrating. The coming months will determine whether Tesla can turn things around or if its competitors will continue to chip away at its once-dominant market share.
