Published by Global Banking & Finance Review®
Posted on October 1, 2025
3 min readLast updated: January 21, 2026
Add as preferred source on GoogleTesla's sales in Europe rise with the Model Y, but competition from European and Chinese EV makers intensifies, challenging its market position.
By Nick Carey and Jesus Calero
LONDON (Reuters) -Tesla's sales rose in several European markets in September, including France and Denmark, driven by its updated Model Y, but analysts say the automaker risks losing ground as competition intensifies and its ageing lineup remains unchanged.
The U.S. electric vehicle maker showed continued growth in Norway and Spain, local industry data showed on Wednesday, with the revised Model Y the best-selling model in Denmark.
However, new car registrations - a proxy for sales - fell in Sweden and in the Netherlands for the ninth straight month.
Tesla has seen sales slump in Europe this year, as its limited and ageing lineup contends with a wave of new EVs from European and Chinese manufacturers. The company has not launched a new mass-market model since the Model Y in 2020.
RISING COMPETITION AND BACKLASH VS MUSK
Matthias Schmidt of Schmidt Automotive Research, said the uptick "reflects a bottoming out of the downward trend rather than any real signs of an expected uplift being anywhere around the corner."
He added that an affordable version of the Model Y could help in 2026, but "we expect things will remain tough for Tesla in a more competitive market environment."
Tesla's competitive problems have been compounded by a backlash by some consumers against its CEO Elon Musk, who helped bankroll Donald Trump's U.S. presidential election victory last year and has championed European far-right parties.
Tesla has argued that its revamped Model Y, which it began delivering in many European markets in June, would lead a recovery in European sales.
For January-August, Tesla's sales were down 42.9% year-on-year in the European Union and down 32.6% in Europe as a whole.
During the same period, industry-wide EV sales in the EU rose 24.8%.
China's BYD outsold Tesla in the EU in August for the second time this year, though Tesla outperformed its Chinese rival across Europe as a whole.
Only a few years ago Tesla was largely unchallenged in Europe and the Model Y was Europe's top-selling car in 2023, but now faces dozens of much newer models from competitors across the continent.
"Tesla may still be a big fish, but the pond is now full of serious competitors," said Andy Palmer, chairman of EV advocacy group Electric Vehicles UK. "Unless it refreshes its range, it will keep losing market share."
MIXED RESULTS ACROSS KEY MARKETS
In September, Tesla reported a 2.74% annual increase in sales in France and a 20.5% rise in Denmark.
In Norway, Tesla's registrations were up 14.7%, with its Model Y and Model 3 taking the top two spots for sales. Tesla sales rose 3.4% in Spain, boosted by a 60% increase in new Model Y registrations.
But in Sweden, which was Tesla's worst-performing market in Europe in the first eight months of the year, its registrations fell 64% to 1,726 cars, although that was up sharply from the 210 cars it registered there in August.
Sales in the Netherlands fell 48% in September.
Andy Leyland, co-founder of supply chain specialist SC Insights, said the competition Tesla faces is about to get worse, as Chinese automakers roll out their distribution networks in key European markets like Germany, the United Kingdom and France.
"It will be really critical to see whether Tesla can still compete," Leyland said.
(Reporting by Nick Carey; Editing by Mark Potter and Louise Heavens)
An electric vehicle (EV) is a type of vehicle that is powered by one or more electric motors, using energy typically stored in rechargeable batteries.
Market share is the portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.
A sales proxy is a metric or indicator used to estimate sales performance, such as new car registrations, which can reflect consumer demand.
A product lineup is the range of products offered by a company, which can include various models or versions of a product.
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