Tesla maintains its dominance in Norway, yet faces a slump in Europe as a whole
Tesla Struggles with Declining Sales in Europe as Electric Vehicle Market Grows
Tesla's sales numbers in Europe are experiencing a significant downturn, according to recent data. Compared to the same month a year earlier, sales have dropped by 53.7% in Sweden, 30.5% in Denmark, 36% in the Netherlands, 67% in France, and 68% in Portugal. This decline continues a trend seen throughout 2025, with overall sales figures in Europe falling sharply in May 2025 compared to May 2024, resulting in a year-to-date decline of around 34%.
However, the story is not uniform across all European countries. In Norway, Tesla sales showed a significant increase, up by 83%, due to 0% interest loan incentives boosting demand. Spain also saw a rise in Tesla sales, with a 27% increase, coinciding with a strong 155% jump in all electrified car sales.
On the other hand, countries like Sweden, Denmark, the Netherlands, France, and Portugal have seen sharp declines in Tesla sales, despite modest overall growth in their electric vehicle markets. For instance, Sweden's Tesla sales plummeted by 86%, Denmark's dropped by 52%, and the Netherlands saw a 62% fall, while the total EV market grew by 9%, 20%, and 9% respectively.
France's Tesla registrations declined by 27%, contrasted by an 8% drop in overall car sales (including EVs), suggesting challenges specific to Tesla. Portugal's Tesla sales dropped roughly 49%.
The refreshed Model Y, released in early 2025, has failed to reverse the sales decline in most countries.
In Denmark, electric vehicles accounted for 61% of new car sales in May 2025. In Sweden, they accounted for 37%. Despite Tesla's struggles, Norway, which has the highest penetration of electric vehicles in the world, saw Tesla accounting for an 18.2% share of the country's new car market, with the Model Y accounting for 16.5% of all new car sales.
Norway's EV market share was 92.7% for the first five months of 2025, up from 87% for the same period a year earlier. The Tesla Model Y was the best-selling car in Norway for May 2025, selling 2,346 units.
In Spain, electric vehicles accounted for 7.43% of the total new car sales for May 2025, with a 91.1% increase in EV sales compared to May 2024, totaling 9,914 units. However, Tesla new car sales in Spain dropped by 19% in May 2025, selling 794 cars.
Joshua S. Hill, a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years, has been reporting on these developments for Renew Economy and The Driven since 2012. His preferred mode of transport, however, is his feet.
This data indicates that Tesla is losing significant market share in many key European markets despite growing EV adoption overall, with the exceptions of Norway and Spain where localized incentives and market conditions have helped Tesla sales increase.
Despite the growth in the electric vehicle market across Europe, Tesla has faced a decline in sales in several countries, including Sweden, Denmark, the Netherlands, France, and Portugal, as shown in the data. On the contrary, Tesla sales have increased in Norway and Spain, primarily due to localized incentives and market conditions.
