Tesla’s European sales continue their downward trajectory, further solidifying a trend that began over a year ago. In November 2025, the electric car giant saw another significant decline in its European market performance.
According to Reuters, Tesla’s car registrations—a reliable indicator of sales—dropped by half in major European markets compared to November 2024. France experienced a 58 percent reduction, Sweden saw a 59 percent decrease, and Denmark’s registrations fell by 49 percent. In Germany, Tesla’s sole European manufacturing hub near Berlin, sales in October plummeted to just 750 vehicles, which is less than half the number sold in the previous year.
In stark contrast, Norway witnessed a surge in Tesla registrations, with figures nearly tripling to 6,215 units.
Throughout the first ten months of 2025, Tesla’s European sales dwindled by about 30 percent from the same period in 2024, as reported by the European Automobile Manufacturers’ Association. Additionally, Schmidt Automotive’s analysis revealed a drop in Tesla’s market share in the electric vehicle sector from 12.6 percent in May 2024 to 7.2 percent in May 2025.
Volkswagen emerged as the leading electric vehicle manufacturer in Europe, recording 133,465 units sold in the first half of the year, surpassing Tesla’s 108,878. Meanwhile, Chinese automaker BYD more than doubled Tesla’s sales in October.
Global Shock Waves
The decline in Tesla’s European performance can be attributed to several factors. Elon Musk’s political affiliations have estranged a portion of his clientele, particularly in Germany, where his support for the far-right party Alternative für Deutschland (AfD) led to backlash. Musk’s involvement in an AfD election rally in January 2025, where he controversially addressed Germany’s Nazi past, sparked boycotts. Companies like Rossmann and LichtBlick divested from their Tesla fleets, and Poland’s Sports Minister Slawomir Nitras urged a boycott of the brand.
Moreover, competition in the electric vehicle market has intensified, with over 150 models from European, Chinese, Korean, and Japanese manufacturers available to consumers. A survey by Escalent, involving over 2,000 buyers in the five largest European car markets, found that 38 percent perceive Tesla as having lost its prestige.
Italy’s Tesla sales also experienced a downturn, declining for six consecutive months up to October, when only 256 cars were sold—a 47 percent drop from October 2024, based on data from Italy’s Ministry of Infrastructure and Transport. From January to October 2025, 9,047 Teslas were registered in Italy, marking a 33 percent decrease, despite a 73 percent growth in the country’s electric vehicle market in the first five months of the year.
Norwegian Reasons
Conversely, Tesla has set new records in Norway. The company sold more vehicles there in 2025 than any other automaker in Norwegian history, surpassing Volkswagen’s 2016 record. As Reuters reports, the Norwegian Road Federation disclosed that Tesla registered 28,606 vehicles from January to November, a 34.6 percent rise over the same timeframe in 2024. Tesla now commands a 31.2 percent share of the Norwegian car market.
This success is attributed to Norway’s strong emphasis on electric vehicles, with 97.6 percent of new car registrations in November being battery-powered. The country’s incentive framework, which has developed over two decades, includes a 25 percent VAT exemption for electric cars priced below 500,000 Norwegian kroner (€42,500/$49,360).
However, the surge in November can also be linked to upcoming policy changes. The Norwegian government plans to decrease the VAT exemption threshold to 300,000 kroner (€25,500/$29,600) in 2026 and eliminate it entirely by 2027. Consequently, Norwegian consumers are accelerating their purchases before these changes take effect.
This story was originally published by WIRED Italia and has been translated from Italian.
Original Story at www.wired.com