By Tesla, once the frontrunner in the electric vehicle (EV) market, has experienced a significant sales decline across Europe in recent months, a trend that stands in stark contrast to the broader stability and growth in the region’s EV market.
Belgium and the Netherlands
In Belgium, Tesla’s sales dropped by 45% in January 2025 compared to January 2024. The situation in the Netherlands was even more alarming, with Tesla sales falling to just 900 units last month, the lowest in 18 months. This decline highlights the challenges Tesla faces in maintaining its dominance in competitive European markets.
Germany and France
Germany, Europe’s largest car market, saw a staggering 59% drop in Tesla sales in January. This sharp decline comes as the German EV market remains robust, with local manufacturers like Volkswagen and BMW gaining ground. Similarly, France experienced a 63% year-over-year drop in Tesla sales in January, despite overall EV sales in the country remaining stable.
Scandinavia and the UK
Scandinavian countries, traditionally strongholds for Tesla, have also reported significant declines. In Sweden, Tesla sales decreased by 44%, while Norway, where EVs accounted for 88.9% of new car sales in 2024, saw a 38% drop. Across the Channel in the UK, Tesla sales fell by 12% in January, even as the broader EV market grew by 35%.
Possible Reasons Behind the Decline
The sales collapse in Europe can be attributed to several factors: increased competition from European automakers, the introduction of new EV models, and potential concerns over Tesla’s pricing and after-sales service. Additionally, rivals like Polestar and Volvo, with their strong regional presence, are steadily chipping away at Tesla’s market share.
Tesla’s recent sales performance in Europe serves as a wake-up call for the EV giant. With European automakers advancing rapidly in technology and affordability, Tesla faces mounting pressure to adapt its strategies and reclaim its footing in this critical market.
