Tesla maintains its dominance in Norway, but the trend slows down across the rest of Europe
Tesla Struggles in European Market Amid EV Growth and Competition
Tesla's sales in Europe have taken a significant hit in 2025, according to recent reports. In the first half of the year, Tesla's deliveries dropped by 33%, from about 165,000 vehicles in H1 2024 down to approximately 110,000 in H1 2025. This decline pushed Tesla's market share down from 22% to 15% in Europe.
The decline in Tesla's sales can be seen across various European countries. In Sweden, electric vehicles (EVs) accounted for 37% of new car sales in May 2025, but Tesla's new car sales dropped by 53.7%, selling only 503 cars compared to 1,086 in May 2024. Similarly, in Spain, Tesla sales dropped by 19% in May 2025, totaling 794 cars sold. In Portugal, sales were down 68%, and in France, they dropped by 67%.
However, the story is different in Norway, where EVs accounted for 92.7% of new car sales in May 2025. The Tesla Model Y, the top battery electric vehicle (BEV) registered in Europe, accounted for 16.5% of all new car sales in Norway for May 2025. In fact, the Model Y was the most popular car in Norway for May 2025, with 2,346 units sold.
The European EV market is growing, with registrations up 24% in H1 2025. This growth is driven by the introduction of many new affordable EV models from local automakers. However, consumer concerns over charging availability remain a barrier, with 30% citing it as a major concern. The EU plans to reach 1 million public chargers by 2027, but as of June 2025, only 650,000 public chargers have been installed, which impacts EV adoption dynamics.
The competitive landscape in Europe is intensifying, with strong rises in VW ID series, BYD, Kia EV3, Renault 5, and others eroding Tesla’s foothold. Tesla’s updated Model Y could not spur a broader sales recovery. In addition, country-specific factors such as subsidy cuts in Germany and fiscal belt-tightening in Italy and Spain have negatively impacted demand in those key markets.
Tesla ceased accepting new orders for its Model S and Model X in Europe as of late July 2025, likely due to supply constraints and lower demand. This could indirectly affect luxury EV sales volumes in the region.
Table: Aspect vs Details (May 2025 / H1 2025)
| Aspect | Details (May 2025 / H1 2025) | |----------------------------|------------------------------------------------------------------------| | Tesla Europe sales volume | ~110,000 vehicles in H1 2025 (down 33% YoY from 165,000 in H1 2024) | | Tesla Europe market share | Declined from 22% (2024) to 15% (H1 2025) | | Top Tesla model | Model Y: slight +0.1% registration growth in June 2025 vs. last year | | Competitive landscape | Strong rises in VW ID series, BYD, Kia EV3, Renault 5 | | Country-specific factors | Germany subsidy cuts; inflation impact in Italy, Spain | | EV market growth | Europe EV registrations +24% in H1 2025 | | EV penetration barriers | Charging availability remains concern (30%) | | Charging infrastructure | 650,000 public chargers installed (June 2025) vs 1 million EU target | | Model S/X orders in Europe | New orders stopped in July 2025, supply and demand issues |
This data illustrates Tesla’s sales challenges in Europe amid expanding EV adoption but increasing local competition, subsidy changes, and infrastructure constraints.
References
[1] Hill, J. S. (2025). Tesla’s European Sales Decline Amid EV Market Growth and Competition. Renew Economy. Retrieved from https://reneweconomy.com.au/teslas-european-sales-decline-amid-ev-market-growth-and-competition-70275/
[2] Hill, J. S. (2025). Tesla Model Y Remains Europe's Top BEV Despite Sluggish Sales. The Driven. Retrieved from https://thedriven.io/2025/07/26/tesla-model-y-remains-europes-top-bev-despite-sluggish-sales/
[3] Hill, J. S. (2025). Tesla Stops Taking New Orders for Model S and Model X in Europe. The Driven. Retrieved from https://thedriven.io/2025/08/02/tesla-stops-taking-new-orders-for-model-s-and-model-x-in-europe/
- The decrease in Tesla's sales in Europe can be attributed to the growth of the electric vehicle (EV) market and increased competition from other automotive brands such as Volkswagen ID series, BYD, Kia EV3, Renault 5, and others.
- Despite Tesla's sales decline, the Model Y remains popular, particularly in Europe, where it was the top-selling BEV in Norway in May 2025.
- Infrastructure constraints, such as insufficient public chargers, and country-specific factors like subsidy cuts and fiscal belt-tightening in key markets (Germany, Italy, Spain) are challenges Tesla faces in the European market.
- As a response to supply constraints and lower demand, Tesla ceased accepting new orders for its Model S and Model X in Europe in July 2025. This move may affect luxury EV sales volumes in the region.
The growing EV market, increased competition, and infrastructure issues present significant challenges for Tesla in the European market, as illustrated by the decreased sales and market share discussed in the table and news articles. [1-3]
