Published by Global Banking & Finance Review®
Posted on June 2, 2025
3 min readLast updated: January 23, 2026
Add as preferred source on GoogleTesla's European sales decline continues, but Model Y sees a surge in Norway. The company faces competition and challenges from Elon Musk's political ties.
By Nick Carey
LONDON (Reuters) -Tesla's car sales fell sharply in several European markets including Sweden and Portugal in May, a fifth consecutive monthly decline that has been blamed on CEO Elon Musk's political activities and an outdated model lineup.
However, Norway, where Tesla has started delivering revamped versions of its midsize SUV Model Y, provided a lone bright spot for the company as it prepares to roll out the refreshed vehicle in more European markets from this month.
The company's U.S.-listed shares were 2.2% lower in pre-market trading.
Tesla has not launched a new mainstream model since 2020, while traditional automakers are rushing to produce more affordable electric cars and Chinese rivals like BYD enter the European marketplace.
In Sweden, Tesla's new car sales plunged 53.7% in May from a year earlier, while in Portugal they were down 68%. Overall electric vehicle sales in both markets rose by almost a quarter in May.
Tesla's sales were also down 30.5% in Denmark, 36% in the Netherlands and 19% in Spain, while data from PFA in France released on Sunday showed a 67% fall.
In Norway, sales jumped 213% in May, data from the Norwegian Road Federation (OFV) showed, with purchases of Model Ys - both the new and old versions - rising to 2,346 from 690.
"Tesla's strong performance in Norway points to the way forward for the company: innovate," said Ben Nelmes, founder of EV data analysis firm New AutoMotive. "No car company can rest on its laurels and be guaranteed success."
Buyers can already order a new Model Y across much of Europe, but Tesla's websites in Germany, Britain, France and Italy say estimated deliveries of the lowest-cost version - its biggest seller historically - will only start this month, so have yet to show up in sales data.
Tesla has also been offering financial incentives for purchases in Sweden, Germany, Britain and France in a bid to drum up demand. In Norway, it is offering interest-free loans for the new Model Y.
Quentin Wilson, founder of EV lobby group FairCharge said Tesla's price cuts were stimulating sales, but with only the Model Y and Model 3 selling in large volumes, "things aren't looking great for the future of the brand".
Musk's close alliance with U.S. President Donald Trump and his embrace of far-right politics in Europe have led to protests against the billionaire CEO and his company, as well as vandalism at its showrooms and charging stations across the United States and Europe.
Musk left the Trump administration last week, saying he will devote more of his time to running the automaker.
The Model Y was Europe's best-selling car in 2023 but Tesla now faces more intense competition in a number of markets.
In Sweden, for example, sales of Volkswagen's electric ID.7 were almost twice those of the Model Y. Tesla's mass-market Model 3 was also outsold in Sweden by electric models including Porsche's Macan, BYD's Seal and the G6 from Chinese EV maker Xpeng.
(Reporting By Nick Carey; Editing by Kirsten Donovan)
Tesla's car sales have fallen sharply in several European markets, marking a fifth consecutive monthly decline.
Norway experienced a remarkable 213% increase in Tesla sales in May, with purchases of Model Ys rising significantly.
The decline has been attributed to increased competition from traditional automakers and Chinese rivals, as well as Tesla's lack of new mainstream models since 2020.
Tesla is offering financial incentives, including interest-free loans for the new Model Y, to stimulate demand across several European markets.
Musk's political alliances and actions have led to protests and vandalism against Tesla, which may be affecting the company's public perception and sales.
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