Tesla maintains dominance in Norway, yet experiences a slump in the rest of Europe.
Tesla's European Sales Plummet in May 2025
Tesla's sales performance in Europe took a significant hit in May 2025, with a sharp decline compared to the same month the previous year. The Norwegian car market, traditionally a stronghold for Tesla, continued to dominate the electric vehicle (EV) market, but the company's sales numbers dropped in key European markets.
In Norway, Tesla sold 2,600 vehicles in May 2025, including all its models. The Tesla Model Y accounted for 16.5% of all new car sales in the country, making it the most popular EV model. However, the Norwegian Road Traffic Information Council (OFV) reported that the Tesla Model Y was the best-selling car in Norway for May 2025, with 2,346 units sold.
Despite Norway's strong EV market, Tesla's sales success is mainly concentrated in the country, with decreasing sales numbers across the rest of Europe. In Spain, sales dropped by 19%, in the Netherlands by 36%, and in Denmark by 30.5%. The trend continued in France, Portugal, and Sweden, with sales decreasing by 67%, 68%, and 53.7% respectively.
The broader EV market in Europe has shown growth, with EVs accounting for 37% of new car sales in Sweden, 61% in Denmark, and 20.2% in Portugal for May 2025. However, Tesla's losses contrast with the overall market growth, as the company's market share in Europe slumped from 22% in H1 2024 to 15% in H1 2025.
This decline in sales can be attributed to intensified competition, subsidy rollbacks, and regulatory changes affecting demand. The overall European EV market has grown, but Tesla's sales numbers have not kept pace. As the company continues to face challenges in Europe, it remains to be seen how it will navigate the evolving landscape of the continent's EV market.
Joshua S. Hill, a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years, has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.
References:
- Electrek
- Bloomberg
- Reuters
- The decline in Tesla's European sales in May 2025, particularly in key markets like Spain, Netherlands, and Denmark, may have been influenced by increased competition in the automotive industry, as well as changes in finance and regulations, straining the company's overall performance.
- In contrast to the overall growth of the electric vehicle (EV) market in Europe, Tesla's market share dropped from 22% in H1 2024 to 15% in H1 2025, indicating a shift in consumer preferences and a more competitive financing landscape for EVs.
- With the broader transportation sector transitioning towards electric vehicles, Tesla's struggles to maintain its market position in Europe may have implications for its growth strategy and long-term success in the lifestyle sector, both within and beyond the automotive industry.
