After years of rapid growth that helped make electric vehicles mainstream across Europe, new data suggests that one of the sector's most recognizable brands is facing a serious slowdown.
According to Electrek, a recent report analyzing 2025 sales numbers shows that Tesla experienced a steep drop in registrations across nearly every major European market — raising concerns for everyone watching the pace of the EV transition.
What's happening?
According to full-year registration data compiled, Tesla's European sales fell from roughly 326,000 vehicles in 2024 to just over 235,000 in 2025, a 27.8% year-over-year decline.
Germany, once Tesla's strongest European growth engine, saw registrations plunge nearly 50%. France recorded a 37.5% drop after updated incentive rules excluded certain Tesla models from eligibility.
The lone bright spot, Norway, appeared to be temporary. Analysts noted that much of Tesla's late-year surge there came as buyers rushed to take advantage of incentives set to change in 2026.
One reader's comment summed up a broader concern about the brand's trajectory.
"Tesla's problem is that Musk doesn't think Tesla can compete with the Chinese as a vehicle manufacturer, and it's easy to see the impact of his belief," they wrote, alluding to the CEO's increasing focus on artificial intelligence and robotics rather than vehicle innovation.
Why is a drop in Tesla sales concerning?
For customers, shrinking sales can signal bigger issues.
Slower demand can limit service expansion or reduce competition-driven price pressure that has helped make EVs more affordable.
Tesla's challenges come amid growing competition.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
|
What do you think of Tesla and Elon Musk?
Click your choice to see results and speak your mind. |
Elon is the man 🥰 European buyers now have more EV options at a wider range of prices — including models from China's BYD, which sold more than 11 million electric vehicles globally, according to the International Energy Agency.
Tesla has been facing consumer scrutiny beyond its recent sales drop.
A slew of customer-facing problems, including reports of weak Cybertruck demand and safety concerns about its retractable door handles, further undermined confidence in the brand.
What's being done about it?
Tesla introduced lower-cost versions of the Model 3 and Model Y, which could help stabilize demand.
But ultimately, consumers interested in electric vehicles aren't limited to one brand.
Other automakers continue to roll out affordable options, such as the Kia EV4, which launched in Canada with a starting price around $27,000.
Broader choices mean shoppers can still switch to an EV, cutting fuel costs and tailpipe pollution, even if Tesla's momentum slows further.
Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.
Cool Picks
