Tesla Faces Sales Decline in Europe Amid Political Controversy and Rising Competition
Tesla (NASDAQ: TSLA) is experiencing a significant drop in sales across Scandinavia and France, as brand loyalty weakens following CEO Elon Musk’s political involvement. Once dominant in Norway, Sweden, and Denmark, the EV giant has lost ground to competitors such as Volkswagen and Toyota, according to new registration data.
Tesla’s Sales Plunge in Key European Markets
Tesla registrations have dropped dramatically in February compared to last year:
Decline in Key European Markets
- Sweden: 613 new Tesla registrations (down 42% year-over-year)
- Norway: 917 registrations (down 48%)
- Denmark: 509 registrations (down 48%)
- France: Tesla registrations fell 45% over the first two months of 2025
Despite the growing demand for electric vehicles (EVs) in these countries, Tesla’s share of overall car sales has slipped. In Norway, where nearly all new cars are electric, Tesla’s market share has dropped from 20% in 2023 to 8.8% year-to-date.
Political Controversy Sparks Backlash
Musk’s high-profile political engagements, including endorsing far-right views in Europe and supporting sweeping U.S. federal workforce cuts, have led to mounting criticism. The backlash has fueled:
- “Tesla Takedown” protests across the United States
- Boycott calls in Europe
- Diminished brand perception, impacting consumer sentiment
Tesla’s Declining Popularity in France
- Model Y, the best-selling EV in 2024, has dropped to 27th place in 2025.
- Losing ground to rivals like Peugeot 208, Renault 5, and Citroen e-C3.
- Consumers are shifting preference to local and alternative EV brands over Tesla.
Tesla’s Market Challenges in Europe
The ongoing decline in Tesla’s European market share reflects a mix of:
- Stronger competition from established automakers like Volkswagen and Toyota.
- Changing consumer sentiment as European buyers seek locally manufactured EVs.
- Political headwinds affecting brand perception and sales.
What’s Next for Tesla?
To maintain its position in the rapidly evolving EV landscape, Tesla will need to:
- Recalibrate its European market strategy.
- Strengthen its brand image amid political controversy.
- Compete effectively against rising local and global EV competitors.
Tesla’s ability to adapt to shifting market dynamics will determine its future success in the European EV sector.
