Tesla Biggest Problem Just Got Worse In February
Tesla, once a dominant force in the European electric vehicle (EV) market, is facing significant sales declines in early 2025. As reports for February roll in, the trend of shrinking Tesla sales continues, raising concerns about its long-term standing in the region.
After a 50% year-over-year drop in European sales in January 2025, February has brought no signs of recovery. Data from France, Norway, Sweden, and Denmark—the first countries to report their figures—confirm that Tesla’s troubles are far from over.
- France: EV sales, in general, have slowed down due to the removal of government incentives, but Tesla’s sales decline has been particularly steep.
- Norway: While total EV sales grew by 21%, Tesla’s sales dropped by a staggering 48%. This suggests that while the Norwegian EV market is thriving, buyers are opting for Tesla’s competitors instead.
- Sweden & Denmark: Similar trends are seen, with Tesla losing ground to rival automakers.
With major markets like Germany and the UK yet to report, the full extent of Tesla’s struggle is still unfolding. However, given Germany’s previous trend of being Tesla’s weakest European market, things aren’t looking optimistic.
Why Are Tesla’s Sales Declining?
There are several key factors contributing to Tesla’s struggles in Europe:
1. The Model Y Transition and Inventory Shortages
One major factor affecting sales is Tesla’s launch of a refreshed Model Y. The company has been clearing out its old inventory, leading to limited stock availability before deliveries of the new version begin in March.
However, Tesla faced a similar situation with the Model 3 refresh last year, and yet its sales have also declined year-over-year. This suggests that Tesla’s demand problem runs deeper than just a model transition.
2. Increased Competition in the European EV Market
The European EV market is more competitive than ever, with new models from BYD, Volkswagen, BMW, Mercedes-Benz, and Hyundai offering strong alternatives to Tesla.
- Many European carmakers now provide affordable EV options with better interior quality and features.
- Chinese EV brands like BYD have entered the market with aggressive pricing, making it harder for Tesla to maintain its dominance.
With more choices than ever, Tesla is no longer the default option for EV buyers in Europe.
3. Elon Musk’s Political Controversies
Tesla’s CEO, Elon Musk, has been vocal in political debates, and his comments have alienated some customers, particularly in regions with progressive policies like Europe. For many European consumers, corporate values matter, and some may be turning away from Tesla due to Musk’s controversial opinions.
| Countries | Feb-25 | Feb-24 | Jan-25 | Jan-24 | YoY change |
| Germany | 1,277 | 3,150 | -59.5% | ||
| UK | 1,293 | 1,581 | -18.2% | ||
| France | 2,395 | 3,244 | 1,141 | 3,118 | -44.4% |
| Netherlands | 926 | 1,610 | -42.5% | ||
| Norway | 917 | 1,777 | 663 | 1,109 | -45.3% |
| Spain | 269 | 1,094 | -75.4% | ||
| Sweden | 613 | 1,064 | 394 | 730 | -43.9% |
| Denmark | 509 | 1,086 | 451 | 763 | -48.1% |
| Portugal | 380 | 551 | -31.0% | ||
| Total | 4,434 | 7,171 | 6,794 | 13,706 | -46.2% |
While Tesla is still a key player in the EV industry, it can’t afford to ignore these warning signs. To regain momentum, Tesla will need to:
- Strengthen its European presence by addressing production and delivery delays.
- Improve its pricing strategy to remain competitive in the growing EV market.
- Enhance its brand image to win back customers who may have been put off by Musk’s public persona.
With Germany and the UK sales figures still to be revealed, the coming months will be crucial in determining whether Tesla can turn things around—or continue its downward spiral in Europe.
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