2025 Marks a Turning Point for Tesla in Europe
For years, Tesla appeared unstoppable in Europe. Its electric cars dominated registration charts, and competitors struggled to keep pace. But 2025 told a very different story.
According to final registration data, Tesla’s European sales fell from around 326,000 vehicles in 2024 to just over 235,000 in 2025, representing a 27.8% year-on-year decline. The downturn affected nearly every major European market, with only one notable exception.
Weak Demand for Model Y and a Cooling Brand
A major disappointment for Tesla was the performance of the refreshed Tesla Model Y. While production ramped up after a slow start, consumer demand failed to follow. The update did not generate the level of excitement Tesla had hoped for, and overall interest in the brand softened.
At the same time, Europe’s EV market became far more competitive, with new models from Volkswagen Group, Hyundai-Kia, Stellantis, BMW, Mercedes-Benz, and fast-rising Chinese brands offering fresh designs and aggressive pricing.
Germany: Tesla’s Biggest Collapse in Europe
Germany, once a cornerstone of Tesla’s European strategy, delivered the most alarming numbers.
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2024: ~37,500 vehicles
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2025: ~19,000 vehicles
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Change: –48.4%
Sales in Tesla’s most important EU market were nearly cut in half in a single year, despite local production at Gigafactory Berlin.
France Hit by Policy Changes
France also proved difficult, largely due to changes in the country’s “bonus écologique” incentive scheme.
Because the new Tesla Model 3 sold in France is built in China, it lost eligibility for state incentives, sharply reducing its appeal.
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2024: 40,732 vehicles
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2025: 25,477 vehicles
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Change: –37.5%
Northern & Western Europe: Heavy Losses Across the Board
Tesla’s struggles extended across much of Northern and Western Europe.
Tesla Sales Decline by Country (2025 vs 2024)
| Country | 2024 Sales | 2025 Sales | Change |
|---|---|---|---|
| Sweden | 21,897 | 7,252 | –66.9% |
| Belgium | 21,182 | 9,933 | –53.1% |
| Netherlands | ~30,000 | 16,683 | –44.5% |
| Denmark | ~16,000 | 9,457 | –41.0% |
| Finland | ~3,720 | 2,618 | –29.6% |
| Switzerland | ~8,930 | 6,446 | –27.8% |
These are not marginal declines — they represent a collapse in demand in markets that once embraced Tesla early.
Southern Europe: Less Severe, Still Negative
Southern Europe proved slightly more resilient, but Tesla still ended the year in the red.
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Italy: –17.9% (12,847 vehicles)
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Portugal: –22.3% (7,585 vehicles)
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Spain: –4.1% (16,005 vehicles)
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Austria: –19.2%
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Poland: –11.9%
Spain was the least affected among major markets — but growth still failed to materialize.
Norway: The Only Bright Spot — With a Catch
The sole exception was Norway, where Tesla sales rose by 41.3%:
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2024: 24,259 vehicles
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2025: 34,285 vehicles
However, this success is widely viewed as artificial demand. Norway plans to reduce EV tax benefits for expensive cars in 2026, prompting buyers to rush purchases into late 2025.
As a result, 2026 is likely to be extremely challenging for Tesla in Norway, as demand has effectively been pulled forward.
United Kingdom: Still the Largest Market, But Slipping
The United Kingdom remains Tesla’s largest European market — but even here, growth stalled.
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2025 sales: 45,513 vehicles
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Change: –9.6%
This is particularly concerning as Chinese EV brands are rapidly expanding in the UK, intensifying competition ahead of 2026.
Why Is Tesla Losing Ground in Europe?
Several factors appear to be driving the decline:
Key Reasons Behind Tesla’s 2025 Slump
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An aging product lineup with limited visual differentiation
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Lack of new models in key segments
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Aggressive competition from European and Chinese manufacturers
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Reduced incentives in major markets
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Brand damage linked to CEO behavior, alienating some buyers
Perhaps most critically, Tesla enters 2026 without a strong order backlog in Europe.
Can Tesla Recover in 2026?
A rebound will not be easy.
Without:
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Significant price cuts, or
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The launch of a genuinely new, mass-market model
Tesla risks continuing its downward trajectory in Europe. With stronger rivals, fresher products, and more aggressive pricing, 2026 could be even tougher unless Tesla acts decisively.
Final Verdict: From Dominance to Defensive Mode
2025 marked a clear turning point for Tesla in Europe. What was once a story of dominance has become one of erosion and rising pressure.
Tesla is still a major force — but it is no longer untouchable.
And in Europe’s fast-evolving EV market, standing still is the fastest way to fall behind.
Tesla’s European sales dropped by nearly 30% in 2025, falling from around 326,000 to just over 235,000 vehicles. The decline affected almost every major market, including Germany, France, and Northern Europe, with only Norway showing temporary growth due to tax changes. As competition intensifies and Tesla’s lineup ages, the company faces a difficult recovery in Europe heading into 2026.
