Increased Tesla Sales in Norway Triple, European Markets, Including Germany, Remain Moderate
In a surprising turn of events, Tesla, the American electric vehicle (EV) giant, has been experiencing a significant decline in sales across several European markets, with Germany being a notable example. According to data from the Federal Motor Transport Authority, new registrations of Tesla EVs in Germany dropped by a staggering 57.7% year-to-date as of May 2025.
The decline in Tesla's sales in Germany follows a similar trend in other European countries, such as France, where new registrations of Tesla EVs fell by two-thirds in May 2025. The UK, Portugal, and Sweden have also reported decreases in Tesla's sales. However, Austria was a rare bright spot, with a 29% increase in new registrations in May 2025.
Several factors are contributing to Tesla's slump in the German market. One of the key reasons is the intensified competition from fresh, competitively priced EV offerings, particularly from Chinese automaker BYD. BYD's sales in Germany surged nearly fivefold year-to-date and tripled in June, attracting consumers and challenging Tesla's older Model 3 and Model Y lineups, which are increasingly seen as aging designs.
Production disruptions at Tesla, notably related to retooling for a refreshed Model Y, have also constrained supply and hindered Tesla's ability to meet demand, further impacting sales volumes in Germany and across other European markets.
Another factor affecting Tesla's sales is the brand and reputational challenges tied to Tesla CEO Elon Musk's controversial political activities. These activities have reportedly alienated some European buyers, contributing to cooling public sentiment despite Tesla's technological advantages such as full self-driving capabilities and over-the-air updates.
Despite the overall German battery EV market growing by 45% in June 2025, Tesla's sales have not benefited from this upward trend, reflecting a significant erosion of its market share in Germany.
On the other hand, the Norwegian market remains favourable for electric vehicle providers. With a pure EV share of 93.9% in May 2025, Norway holds the highest electric vehicle share worldwide, according to the Norwegian Electric Vehicle Association (OFV). Tesla's sales in Norway picked up again after the introduction of the refreshed Tesla Model Y in January 2025, with new registrations more than tripling compared to the previous month in May 2025.
The Norwegian EV market, however, is unique in that brand and model loyalty, as well as origin, play no role. The OFV aims to achieve 100% electric new car sales this year.
In conclusion, Tesla's declining sales in Germany and other European markets can be attributed to intensified competition, production issues disrupting supply, and reputational headwinds affecting consumer perception in Europe. Meanwhile, the Norwegian market continues to favour electric vehicle providers, with Tesla experiencing a resurgence in sales following the introduction of the refreshed Model Y.
Tesla's sales decline in Germany is not unique to the country, as France, the UK, Portugal, and Sweden have also reported decreases. The intensified competition from other electric vehicle manufacturers, such as Chinese automaker BYD, is a significant factor in this trend.
In contrast, the Norwegian market remains favorable for electric vehicle providers, with Tesla's sales picking up again after the introduction of the refreshed Tesla Model Y. Despite brand and model loyalty playing no role in the Norwegian EV market, the OFV aims to achieve 100% electric new car sales this year.
