By Amir Orusov

(Reuters) -Tesla's sales rose in Norway and Spain during June, an early sign that some are buying its revamped Model Y vehicle even as the EV maker struggles with the fallout from CEO Elon Musk's politics and competition from European and Chinese brands.

Tesla sales also rose in Portugal, though it was not immediately clear from data provided by the country's automobile industry association ACAP whether that was due to the new Model Y.

However, sales dropped for a sixth straight month in France, Sweden, Denmark and Italy, underlining the challenges still facing the company, which is expected to report another fall in quarterly deliveries on Wednesday.

Tesla had seen sales plunge in recent months to multi-year lows in its key European markets as Musk's relationship with U.S. President Donald Trump and embrace of far-right politics in Europe led to protests against his company, as well as vandalism at its showrooms and charging stations.

According to Schmidt Automotive data, Tesla has suffered six straight year-on-year losses in quarterly new registration volumes across Western Europe. The second quarter of 2025 is "looking like it could be a consecutive seventh," Schmidt said. 

While Tesla began taking orders for the new Model Y months ago, it only started delivering the car to customers in many European markets in June. In Norway, the first deliveries were in May when the company saw a spike in sales.

In June, Tesla saw a strong increase in car registrations in Norway and Spain, lifted by both the old and new versions of the Model Y.

In Norway, Tesla recorded a 54% year-on-year increase in car registrations. Model Y registrations rose 115.3% on a yearly basis to 5,004 units.

"This is a demonstration of power by Tesla. After so much turmoil surrounding owner and frontman Elon Musk, they manage to achieve this result. It's impressive," said Erik Lorentzen, head of the Norwegian Electric Vehicle Association.

In Spain, Tesla sales increased 60.7% in June to 2,632 units. Sales of the Model Y vehicle increased by 127.2% to 1,179 units. In Portugal, Tesla's sales rose 7.3% in June.

"Significant percentage changes often hide small numbers, and some European markets only have hundreds or low thousands of sales each month, which can be impacted by logistics, stock levels, and new product launches," said Andy Leyland, co-founder of supply chain specialist SC Insights.

In Sweden, Tesla's registrations fell 64.4% in June from a year earlier.

Tesla's sales were also down 61.6% in Denmark, where sales of its new Model Y fell 31.2% compared with last year to 1,155 cars, showing no signs of reviving the brand's fortunes.

The EV maker's sales fell 10% in France and 66% in Italy, where fully-electric car sales jumped 117% in June.

Tesla has not launched a new mainstream model since 2020, while traditional automakers are rushing to produce more affordable electric cars and Chinese rivals, such as BYD, are rapidly taking market share.

"A new model update is the classic extension strategy for a product that is used to inflate a product's lifecycle, giving a short-term bounce," said Matthias Schmidt of Schmidt Automotive.

The publication of Tesla's monthly car registration figures coincided with a renewal of a dispute between Musk and U.S. President Donald Trump regarding a sweeping tax-cut and spending bill.

Shares in Tesla were down 5.3% in afternoon trading.

(Reporting by Amir Orusov; additional reporting by Nick Carey and Louise Rasmussen; Editing by Matt Scuffham, Milla Nissi-Prussak, Louise Heavens and Nick Zieminski)