In France, registrations fell 58 percent to 1,593 units. Sweden saw a 59 percent drop to 1,466 vehicles, while Denmark recorded a 49 percent decrease to 534 cars. The Netherlands experienced a 44 percent reduction to 1,627 units, Portugal a 47 percent decline to 425, and Spain a 9 percent dip to 1,523. These figures, which serve as a reliable indicator of sales volume, underscore a persistent downward trajectory across much of the continent.
Despite these setbacks, performance varied by country. In Norway, registrations nearly tripled to 6,215 vehicles, surpassing the nation's previous annual sales record for any brand with one month remaining in the year. Italy also posted growth, with a 58 percent increase to 1,281 units, although cumulative figures for the year through November remain 28 percent below the prior period.
Tesla's overall market share in Europe slipped to 1.6 percent for the January-through-October 2025 period, down from 2.4 percent in the same timeframe of 2024. This continues a trend for the brand, whose Model Y had been the top-selling vehicle both in Europe and globally as recently as 2023.
Several factors contributed to the uneven results. Analysts highlighted intensifying competition from established European manufacturers and emerging players in the electric vehicle sector, alongside Tesla's established product lineup showing signs of maturity. A recent survey by data analytics firm Escalent, covering the five largest European car markets, revealed that 38 percent of respondents perceived the brand's innovative appeal as diminishing, with lower ratings in areas like design, build quality, and overall attractiveness compared to rivals.
Shifting consumer preferences also played a role, as more buyers in regions like France opted for hybrid vehicles over fully battery-electric options, according to the French Automotive Platform (PFA). Meanwhile, deliveries of the refreshed, lower-priced Model Y—starting at 40,000 euros (about $46,468) in Germany—remained limited in Europe by late November. Model Y registrations specifically dropped 67 percent in Sweden, 62 percent in the Netherlands, 55 percent in Portugal, 44 percent in Italy, and 74 percent in Denmark, though they rose 19 percent to 3,648 in Norway.
In contrast, Chinese electric vehicle producer BYD achieved record monthly sales in several markets during November, including 3,526 units in Italy (up significantly year-over-year), 2,934 in Spain (a 268 percent increase), and 570 in the Netherlands (65 percent growth). BYD's broader portfolio, which includes hybrid and plug-in hybrid models, has supported its expansion amid varying demand for pure electric vehicles.
The sales slowdown in Europe began toward the end of 2024, coinciding with increased public discourse around the company's leadership. A notable incident in November involved a fire at a Tesla showroom in southern France, which authorities are investigating. Although commentary on such topics has moderated recently, the European operations have yet to regain earlier momentum.
These developments highlight the dynamic nature of the electric vehicle market, where regional incentives, product availability, and competitive pressures influence outcomes. As 2025 draws to a close, Tesla's focus on robotics initiatives and executive compensation matters may have diverted attention from immediate sales strategies, but upcoming model deliveries could influence December performance.
