Just a few years ago, Tesla dominated the electric car market in Europe, with its Model 3 and Model Y becoming the top sellers. But 2025 shows a different picture. In most EU countries, interest in Tesla’s electric vehicles is rapidly waning — and not just because of competition. But despite the general decline, there is one country where Tesla continues to break its own records.
Tesla’s failure in Europe
Last month was reportedThe Chinese automaker BYD has surpassed Tesla in terms of the number of registered electric vehicles in Europe for the first time. The situation has not changed for the better for the American company, despite the entry of updated version of the Model Y.
For example, in Sweden, Tesla’s sales in May fell by 54% — to 503 cars. In France, the result is even worse: minus 67% and only 721 cars sold, according to AAA.
Overall, Tesla’s sales in Europe have almost halved. This happened despite the fact that Elon Musk’s company was once the first electric car brand to overtake even gasoline models in popularity. There are several reasons for this: competition from traditional automakers and new players from China, such as BYD, as well as disappointment with the minor changes after the Model 3 and Model Y updates.
In addition, the reputation of its founder is taking a heavy toll on Tesla’s image. In Europe, more and more people perceive Elon Musk as a toxic figure because of his support for the far right, particularly the German AfD party. And his other antics, such as «congratulations from the heart», do not add to the popularity of him and his company. In a German poll conducted in March, 94% of respondents said they would never buy a Tesla.
All is not lost
However, despite the general European alienation, Norway cannot get enough of Tesla electric cars. While global and European sales of Tesla are declining, Norway is once again pulling ahead. In May 2025, 2,600 Tesla electric vehicles were sold in this country — 213% more than in the same period last year. According to the Norwegian Road Transport Council, this increase was driven by the updated version of the Model Y. This compact electric crossover has been a bestseller in Norway for three years in a row. In May, it captured as much as 16.5% of the market.
This is twice as much as the closest competitor — Toyota bZ4X (7%), and four times more than Volkswagen ID.4 (4.2%). The overall increase in car sales in Norway was 39%, but Tesla grew almost six times faster.
It is not surprising that Tesla is doing so well in Norway. The local government has been pursuing policies aimed at combating climate change for more than 25 years. And this is despite the fact that the country remains a major oil exporter. However, thanks to powerful financial incentives and an extensive network of charging stations, Norwegians are eagerly switching to electric vehicles. Currently the country has almost reached its goal of fully switching to electric vehicles by 2025.
Despite the Norwegian exception, Tesla is rapidly losing favor with European drivers. And while the updated version of the Model Y is still holding its own in the north, in most other countries customers are increasingly choosing alternatives. The reason is not only competition or model characteristics, but also the way the brand is perceived at the level of values.
Source: carscoops
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