Asger Risom
Tesla’s registrations fell sharply in a number of major European countries in December, a month that capped a difficult year for the company in the region.
Tesla’s performance in Europe is increasingly split. While the electric carmaker suffered steep sales declines in several of the continent’s largest markets at the end of 2025, it closed the year with record results in Norway, the world’s most mature EV market.
New registration data shows how uneven Tesla’s European position has become, as competition intensifies and consumer sentiment shifts across borders.
Sharp December drops
According to Reuters, Tesla’s registrations fell sharply in a number of major European countries in December, a month that capped a difficult year for the company in the region.
In France, Europe’s third-largest car market, registrations dropped 66% year-on-year to 1,942 vehicles, data from industry body PFA showed. Sweden saw an even steeper fall, with registrations down 71% to 821 cars, according to Mobility Sweden.
Tesla also recorded double-digit declines in Portugal, Spain and Belgium in December, underscoring how broadly its momentum has weakened across western Europe.
A difficult year overall
The December slump reflected a wider downturn in 2025. Reuters reported that Tesla’s registrations fell 37% over the full year in France and 70% in Sweden. Annual sales also dropped 22% in Portugal, 4% in Spain and 53% in Belgium.
The slowdown has persisted despite the rollout of cheaper versions of the Model Y and Model 3 across Europe. Analysts and industry groups have pointed to an ageing model lineup, fierce competition from both European and Chinese rivals, and backlash against Elon Musk’s political statements as contributing factors.
Norway breaks the trend
Norway stood out as a clear exception. Tesla registrations there surged 89% in December to 5,679 vehicles, according to official data cited by Reuters.
The company captured more than 19% of the Norwegian market in 2025, setting a new annual sales record. Nearly all new cars sold in Norway are now electric, creating a uniquely favourable environment for EV makers.
While Tesla’s December sales also rose in Italy and Switzerland, those gains were not enough to offset broader declines over the year.
Market share pressure
Up to November, Tesla’s market share across the EU, Britain and the European Free Trade Association fell to 1.7%, down from 2.4% a year earlier, according to figures from European auto lobby ACEA cited by Reuters.
Overall battery-electric vehicles continued to gain ground in Europe, highlighting that Tesla’s struggles are not due to falling EV demand, but to tougher competition and shifting market dynamics.
Sources: Reuters
