Tesla Inc. is facing a persistent and deepening sales crisis across Europe, with new data revealing significant declines in several major markets during November. This downturn comes even as overall consumer demand for electric vehicles continues to grow robustly in the region.
Steep Declines Across Major Economies
The sales figures for November paint a stark picture for the American automaker. In France, the European Union's second-largest car market, registrations of new Tesla vehicles plummeted by 58 per cent to just under 1,600 units. The situation was similarly grim in other Nordic countries, with sales dropping 49 per cent in Denmark and 59 per cent in Sweden.
The trend extends to other key economies. In Spain, Tesla's November registrations declined by 8.7 per cent. Perhaps most telling is the performance in Germany, Europe's largest auto market. While battery-electric vehicle registrations soared by 39 per cent in the first ten months of 2025, Tesla's sales in the country fell by 50 per cent over the same period.
Contrasting Performance in Norway
One market stands in sharp contrast to the broader European trend: Norway. Tesla's registrations there surged by an impressive 175 per cent in November. This spike is attributed partly to consumer uncertainty over future tax incentives for electric vehicles.
Norway has long been a stronghold for Tesla. It was the first country outside the United States to receive the Model S back in 2013, and electric vehicles dominate new car purchases. For the first eleven months of the year, Tesla's sales in Norway have climbed more than a third, securing its position as the best-selling car brand in the country.
Underlying Causes of the Slump
Industry analysts point to a confluence of factors driving Tesla's European struggles. A primary issue is the company's aging vehicle lineup, which has faced increased competition from a flood of new electric models from established European and Asian automakers.
Furthermore, Tesla has faced significant blowback over the politics of its CEO, Elon Musk. His public support for Germany's far-right Alternative for Germany (AfD) party and his activities during the previous Trump administration have alienated some potential customers in the region.
An ongoing regulatory dispute is also casting a shadow. European authorities and Musk have been locked in a public spat over Tesla's driver-assistance technology, which the company markets as Full Self-Driving (FSD). This tension creates uncertainty and may be dampening consumer confidence.
The November data underscores a critical challenge for Tesla: it is losing market share in markets where electric vehicle adoption is accelerating. In France, for instance, Tesla's sales fell dramatically even as the overall share of electric cars in the market rose by nine percentage points to 26 per cent.
As 2025 draws to a close, Tesla's trajectory in Europe remains a key concern. The company's ability to refresh its models and navigate the complex political and regulatory landscape will be crucial to reversing this prolonged sales slump outside of its Norwegian stronghold.
