Tesla's Sales in Europe Are Declining

Tesla reported a sharp drop in sales in Norway, Sweden, and Denmark in October. This indicates that the American electric vehicle manufacturer continues to face challenges in the European market. However, it experienced a slight increase in France for the second consecutive month.

The car manufacturer's new vehicle registrations, as an indicator of sales, fell by 89% in Sweden, 86% in Denmark, and 50% in Norway. Tesla had seen an increase in sales in some European markets in September, but experienced a decline in sales throughout most of the year.

In France, Tesla sales increased by 2.4%, remaining below the overall market growth of 2.9%. The decline in Norway came after several months of growth in a market where nearly all new vehicles are electric vehicles (EVs). Tesla maintains its position as the largest car manufacturer in Norway.

Tesla has faced declining sales in Europe this year, due to the rapid release of new electric vehicle models by major car manufacturers and Chinese competitors alongside its aging model lineup. As of September, Tesla's sales in Europe had decreased by 28.5% compared to the first nine months of 2024.

The company has also faced criticism from some European consumers due to CEO Elon Musk's financial support for Donald Trump's victory in last year's US presidential election and his backing of far-right parties in Europe.

In Denmark, Tesla has been surpassed by several Chinese electric vehicle brands, including BYD, Xpeng, and Geely's Zeekr. Ginny Buckley, CEO of the electric vehicle buying and consulting site Electrifying.com, said, "Car buyers have never had so many options. With the influx of new electric vehicles from established manufacturers and ambitious newcomers, Tesla is no longer the sole owner of the market, and this is reflected in European sales figures."

In Sweden, Tesla sold only 133 vehicles, which was overshadowed by the 172 vehicles sold by the luxury German car manufacturer Porsche. As of October, Tesla's sales in Sweden have decreased by 67% compared to the same period last year.