Tesla’s European sales have plunged for an eighth straight month, with sharp declines in France, Denmark and Sweden highlighting growing competition, consumer backlash against Elon Musk, and the company’s ageing product line.
Car registration figures from France, Denmark and Sweden – the first European countries to release August data – showed that Tesla’s updated Model Y has done little to reverse declining sales.
Figures published in France on Monday revealed that registrations of new Tesla cars dropped by 47.3% year-on-year in August, even as the overall car market grew by 2.2%. In Sweden, Tesla registrations collapsed by more than 84%, with electric vehicle sales flat overall and the wider market up 6%. In Denmark, Tesla’s sales fell by 42%.
Norway, where Tesla retains a strong presence and almost all new car sales are electric, bucked the trend with a 21.3% increase in registrations. However, Chinese rival BYD recorded a 218% surge.
Tesla’s largest European markets – Germany and the United Kingdom – have also experienced sharp declines this year, though they have yet to publish August results.
Analysts point to a number of structural issues: Tesla’s narrow and ageing product line, a lack of new mass-market models since the launch of the Model Y in 2020, and the flood of new models from both Chinese firms and established carmakers.
“Disappointing Tesla volumes can partly be explained by a far more competitive market environment,” said Matthias Schmidt, an analyst at Schmidt Automotive. He noted that Musk sounded “delusional” when he insisted during Tesla’s second-quarter earnings call in July that “there are no issues with Tesla volumes in the European market,” despite the company’s market share in western Europe dropping to 1.7% in the first half of 2025, down from 2.5% the previous year.
Tesla had earlier argued that sales were weaker because production had been shifted to the revamped Model Y, which topped Europe’s sales charts in 2023. Deliveries began in June, yet Model Y registrations fell by 46.5% in Denmark and 87% in Sweden last month.
Musk’s political activities have also damaged the brand. His financial support for Donald Trump’s election victory in the United States last year, along with his endorsement of European far-right parties, has provoked a strong consumer backlash.
Ginny Buckley, chief executive of EV advice platform Electrifying.com, said tracking of consumer sentiment towards Tesla revealed Musk’s influence on the brand was “increasingly polarising.” She added that over half of those surveyed said Musk personally discouraged them from buying a Tesla, signalling that “Tesla’s dominance is no longer guaranteed.”
Andy Leyland, co-founder of supply chain consultancy SC Insights, said that beyond growing competition and “stagnant product lines,” Tesla was suffering from “falling brand loyalty and a loss of technological edge.” He also pointed to the collapse in the value of used Teslas, following sharp price cuts for new cars in 2023, which has further undercut demand.
Marketcheck, which tracks used car sales in the UK, reported record sales of second-hand Teslas in July, up 270%. The average price of a used Model Y fell to its lowest level yet, down 41% compared with July 2024, according to its data.
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