Tesla, once a leader in Europe’s EV market, saw its car registrations tumble in October, a key indicator of sales performance. The drop comes after a brief recovery in September, when sales had temporarily risen following months of decline.
Industry data revealed that Tesla’s new car registrations fell 89% in Sweden, 86% in Denmark, 50% in Norway, and 48% in the Netherlands. In Spain, sales were also down 31% despite a booming market where overall sales of electric and plug-in hybrid cars surged 119%.
Interestingly, in France, Tesla managed a small sales increase for the second consecutive month, suggesting a mixed performance across the region.
Analysts say Tesla’s sales decline is largely due to growing competition from newer, more affordable electric models launched by European and Chinese automakers. The company’s lineup, which has seen little innovation lately, is also struggling to attract new buyers.
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Tesla’s declining sales in Europe show that the EV leader is losing its edge in a rapidly evolving market. Competitors are introducing fresh designs and lower prices, while Tesla’s models feel outdated to many buyers. To regain its dominance, Tesla must speed up innovation and reimagine its European strategy before rivals completely take over.
STILL DOMINANT IN NORWAY
The drop in Norway came after several months of growth in a market where almost all new cars sold were EVs and Tesla has remained the country's largest automaker.
Tesla's sales have fallen in Europe this year because it has a small, ageing lineup of models at a time when legacy manufacturers and Chinese rivals are releasing new EV models at a rapid clip. Through September Tesla's sales were down 28.5% in Europe versus the first nine months of 2024.
The company has also faced a backlash from some European consumers against CEO Elon Musk, who helped bankroll Donald Trump's U.S. presidential election victory last year and has championed European far-right parties.
"Car buyers have more choice than ever, with an influx of new EVs from established manufacturers and ambitious newcomers from China," said Ginny Buckley, CEO of electric-car buying and advice site Electrifying.com.
"Tesla no longer has the market to itself and that seems to be showing in its sales figures in Europe."
CHINESE EVS OUTSELLING TESLA
In Denmark, Tesla was outsold by several Chinese EV brands, including BYD, Xpeng and Geely's Zeekr. In Spain, its October sales of 393 cars were dwarfed by those of SAIC's MG brand (3,725 cars) BYD (2,806 cars) and Chery's Omoda and Jaecoo brands - which sold 1,433 and 974 cars respectively.
Tesla sold just 133 vehicles in Sweden, lagging not just mainstream brands but also luxury German automaker Porsche, which sold 172 cars. Through October, Tesla's sales in Sweden are down 67% versus the same period last year.
Ciara Cook, research manager at research firm New AutoMotive said registrations for mainstream brands such as Fiat, Volvo, Suzuki and Mazda were down 15 to 18% in the year through to September in the European Union "as they work to update their vehicle offerings to match consumer demand".
But Tesla's sales in the EU were down nearly 39% during the same period.
"The Musk factor looks like it is contributing the difference," Cook said.
