Tesla’s vehicle sales declined sharply across several European markets in May, marking the fifth consecutive monthly drop as political controversies surrounding CEO Elon Musk and an aging product lineup weighed on demand. Despite the overall downturn, Norway stood out as a rare success, buoyed by the launch of the refreshed Model Y SUV.
In Sweden, Tesla’s sales fell 53.7% year-on-year, while Portugal reported a 68% drop. Other key markets also saw declines, with sales down 30.5% in Denmark, 36% in the Netherlands, and 19% in Spain. In France, the fall was even steeper, at 67%, according to recent data from automotive associations. These figures come as electric vehicle sales in those same markets grew nearly 25% in May, highlighting Tesla’s loss of market share.
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Norway provided a stark contrast. Deliveries surged 213% last month, driven by strong demand for both the new and existing versions of the Model Y, according to the Norwegian Road Federation (OFV). A total of 2,346 Model Ys were registered in May, up from 690 a year earlier. “Tesla’s strong performance in Norway points to the way forward for the company: innovate,” said Ben Nelmes, founder of EV data firm New AutoMotive. “No car company can rest on its laurels and be guaranteed success.”
Tesla is currently accepting orders for the updated Model Y across most of Europe, though estimated deliveries for its most affordable version—the company’s top seller—are only beginning this month. Meanwhile, the automaker has introduced financial incentives to boost demand, including interest-free loans in Norway and price discounts in Sweden, Germany, Britain, and France.
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Analysts say the company’s limited product portfolio and Musk’s political leanings are complicating its market prospects. “Things aren’t looking great for the future of the brand,” said Quentin Willson, founder of EV lobby group FairCharge. Musk’s alignment with former U.S. President Donald Trump and far-right European figures has triggered protests and vandalism at Tesla showrooms and charging stations.
Although the Model Y was the best-selling car in Europe in 2023, Tesla now faces intensifying competition. In Sweden, Volkswagen’s ID.7 outsold the Model Y in May, while Tesla’s Model 3 was surpassed by electric offerings from Porsche, BYD, and Chinese automaker Xpeng.