Tesla maintains its dominance in Norway, yet struggle persists throughout the rest of Europe
In May 2025, Tesla's sales performance in Europe showed a significant decline compared to the same month the previous year. This trend was consistent across key markets such as the UK, France, and Germany.
In the UK, Tesla sales dropped by around one-third, coinciding with broader declines in European markets. Other European countries also experienced steep declines. For instance, France's Tesla sales fell 27% year-on-year, Sweden's sales dropped around 80%, and Denmark experienced declines of over 50%.
Despite these challenges, the overall European electric vehicle (EV) market continued to grow. Norway, in particular, had the highest EV penetration in the world, with a market share of 93.9% of all new car sales in May 2025. The Tesla Model Y was the best-selling car in Norway for the month, selling 2,346 units.
In Norway, Tesla saw unit sales of 2,600 in May 2025, representing an 18.2% share of the country's new car market. The Tesla Model Y accounted for 16.5% of all new car sales in Norway for the same month.
The decline in Tesla's European sales is attributed to intensified competition, regulatory challenges, and perhaps brand-specific factors. Strong European consumer protection laws create liabilities for Tesla's Full-Self-Driving software, dampening demand.
In Spain, Tesla's new car sales dropped by 19% in May 2025, selling 794 cars. However, it's worth noting that Tesla's sales in Spain for May 2025 increased by 91.1% compared to the sale of all EVs for the same month.
Despite Tesla's struggles, the overall European EV market grew 23% in June 2025, with 361,000 plug-in vehicles registered. This growth was driven by countries like Portugal, where EVs accounted for 20.2% of new car sales in May 2025.
In Sweden, EVs accounted for 37% of new car sales in May 2025. Across Europe more broadly, Tesla experienced a contraction of about 33% in sales during the first half of 2025, despite an updated Model Y launch, which failed to reverse the downward trend.
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.
For the first five months of 2025, Norway's EV market share was 92.7%, up from 87% for the same period a year earlier. The total EV sales in Spain reached 9,914 units in May 2025, accounting for 7.43% of the total new car market.
In conclusion, while Tesla's European sales in May 2025 were considerably weaker than the previous year, the overall European EV market continued to grow. This suggests that while Tesla is facing challenges, the broader EV market remains robust.
- The decline in Tesla's European sales is also observed in Spain, where the company's new car sales dropped by 19% in May 2025.
- Despite Tesla's struggles, the overall European EV market expanded in June 2025, registering 361,000 plug-in vehicles.
- Across Europe, electric vehicles (EVs) gained significant market share, with Sweden accounting for 37% of new car sales in EVs in May 2025.
- As the EV market expands, Joshua S. Hill, a journalist focusing on clean technology and electric vehicles, continues to report on the sector, preferring to walk as his preferred mode of transport.
