Monthly Tesla sales are down year-on-year across key European markets by as much as 65%.
Tesla’s fortunes in Europe appear to have deteriorated even further still in 2025, as sales data from key regions across the continent for March reveals that buyers in the old continent are continuing to shun the American automaker’s offerings in favour of other alternatives.
Recent data paints a challenging picture for Tesla across Europe. March registrations showed significant year-over-year declines:
- France: 3,157 vehicles sold, down 36.83%
- Sweden: 911 vehicles sold, down 63.9%
- Norway: 2,211 vehicles sold, down 1%
- Denmark: 593 vehicles sold, down 65.6%
- Netherlands: 1,536 vehicles sold, down 61%
These monthly figures contribute to Tesla’s weakest first-quarter performance in some markets since 2021. Quarterly sales compared to last year dropped 41.1% in France, 55.3% in Sweden, 12.5% in Norway, 56.4% in Denmark, and 49.7% in the Netherlands.
Tesla’s market position is increasingly threatened by both established manufacturers and emerging competitors. In France, Tesla’s market share fell to just 1.63% during Q1 2025, while its Chinese alternatives like BYD have increased their collective presence to 3.19%.
“Tesla’s weak numbers in Europe are the result of a combination of factors,” explains Ben Nelmes, chief executive of research group New AutoMotive. “The company has failed to develop models that can compete on price. On top of this, the CEO’s involvement in U.S. politics is alienating many consumers.”
Industry experts point to two primary factors behind Tesla’s European struggles. First, the company faces stiff competition with its limited and aging vehicle lineup while competitors launch newer, often more affordable electric options.
“Never has a car brand suffered such a global fall from grace,” said Quentin Willson, founder of British EV campaign group FairCharge and a Tesla owner.
Simultaneously, Tesla CEO Elon Musk’s political activities appear to be affecting consumer sentiment. His support for right-wing political groups, including Germany’s AfD party, has reportedly alienated potential European customers. This political positioning has even led to targeted vandalism against Tesla cars and dealerships in some regions, with “Tesla Takedown” protests planned across Europe and the United States.
As Tesla prepares to release its global first-quarter delivery figures in early April, industry analysts anticipate disappointing results. The outlook is particularly concerning given that the automaker’s performance in China—its largest single market—has also faltered significantly. Total sales in China plummeted by 49% year-over-year to 30,688 units in February 2025, despite the introduction of the newly-refreshed Model Y.
Although the refreshed Model Y has previously been touted to have 200,000 pre-orders on its books before deliveries commenced in late February, initial delivery figures of just over 6,000 units in the first week however fell below typical volumes. This thus suggests a potentially lukewarm customer reception beyond production ramp-up challenges.
For Tesla in China, the fundamental challenge appears to be waning product competitiveness against rapidly evolving local EV manufacturers. Models such as Xiaomi’s SU7 have after all outsold the Model 3 for three consecutive months, while upcoming competitors targeting the Model Y — including offerings from Huawei’s Aito, Xiaomi’s upcoming YU7, and Xpeng — represent a significant threat to Tesla’s market position in the country.
