Tesla’s vehicle registrations in Europe fell sharply in 2025, with demand weakening across almost all major markets as incentives were reduced and competition intensified, according to compiled national registration data.
Total European sales for Tesla declined to just over 235,000 vehicles in 2025, down from about 326,000 units a year earlier, representing a 27.8% year-on-year drop. The reversal followed several years of rapid growth that culminated in the Model Y becoming Europe’s best-selling car.
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The downturn was broad-based. Germany, previously Tesla’s largest European market, recorded a 48.4% fall in registrations to just over 19,000 vehicles from more than 37,500 in 2024. France saw deliveries slide 37.5% after changes to its “bonus écologique” effectively excluded the China-built Model 3 Highland from subsidies. Sweden and Belgium, where EV incentives were also scaled back, posted declines of 66.9% and 53.1%, respectively.
Tesla’s weaker performance persisted even after production of the refreshed Model Y ramped up during the year. While early 2025 volumes were affected by supply constraints linked to the update, registrations later failed to recover to prior-year levels, suggesting limited pent-up demand.
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Norway stood out as the sole major exception, with Tesla posting year-on-year growth. However, analysts and registration patterns indicate the increase was largely driven by a pull-forward of demand into the final months of 2025, ahead of changes to Norwegian EV incentives taking effect in 2026. Under the new rules, higher-priced electric vehicles, including many Tesla models, will lose eligibility for certain tax benefits.
The late surge helped cushion Tesla’s European results in 2025 but is widely seen as temporary, raising questions about demand resilience in Norway and the broader region next year as subsidy regimes continue to tighten.
| Country | 2024 Sales | 2025 Sales | % Change |
| UK | 50,334 | 45,513 | -9.6% |
| Norway | 24,259 | 34,285 | +41.3% |
| France | 40,732 | 25,477 | -37.5% |
| Germany | 37,574 | 19,387 | -48.4% |
| Netherlands | 30,082 | 16,683 | -44.5% |
| Spain | 16,690 | 16,005 | -4.1% |
| Italy | 15,651 | 12,847 | -17.9% |
| Belgium | 21,182 | 9,933 | -53.1% |
| Portugal | 9,760 | 7,585 | -22.3% |
| Denmark | 16,032 | 9,457 | -41.0% |
| Sweden | 21,897 | 7,252 | -66.9% |
| Switzerland | 8,930 | 6,446 | -27.8% |
| Austria | 7,679 | 6,205 | -19.2% |
| Poland | 4,461 | 3,931 | -11.9% |
| Finland | 3,717 | 2,618 | -29.6% |
| Other | 17,009 | 11,698 | -31.2% |
| Total | 325,989 | 235,322 | -27.8% |