Tesla recorded modest year-on-year increases in electric vehicle registrations across several European markets in January, typically one of the slowest months for auto sales. The data comes after a challenging year for the US automaker, marked by a shrinking market share and mounting competitive pressure.
According to figures released by the European Automobile Manufacturers’ Association (ACEA) and cited by Reuters and Agerpres, Tesla’s European market share fell to 1.8% last year, down from 2.5% in 2024. In 2025, the company’s sales declined by 26.9% year-on-year, despite overall growth in the battery electric vehicle segment.
Uneven performance across Europe
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Official data shows that Tesla registrations rose by 26% in Sweden and by 3% in Denmark in January, reaching 512 and 458 vehicles respectively. Stronger growth was reported in Spain and Italy, where registrations increased by 70% and 75%, to 456 and 713 units.
However, performance remained weak in several major markets. In Norway, where almost all cars registered in 2025 were electric, Tesla registrations plunged by 88% year-on-year to just 83 vehicles. Declines were also recorded in France (–42%, 661 units), Portugal (–3.1%, 377 units), Belgium (–31%, 693 vehicles), and the Netherlands (–67%, 307 vehicles).
In 2025, Tesla introduced lower-priced versions of the Model Y and Model 3 in both the US and Europe, amid intensifying competition from rivals such as China’s BYD. Despite these moves, the company has struggled to reignite sales momentum across European markets.
Reuters notes that Tesla’s competitive challenges have been compounded by public reactions to statements and political positions taken by CEO Elon Musk, which have triggered consumer backlash in parts of Europe at a time when brand perception plays an increasingly important role in purchasing decisions.
Photo: Quartz
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