In November 2025, Tesla faced a significant decline in registrations in key European markets. At NEWSCENTRAL, we note that sales in countries like France, Sweden, and Denmark dropped by 44% to 59% compared to the same period last year. However, in Norway and Italy, registration numbers showed growth – with Norway nearly tripling its registrations to a record 6,215 vehicles, and Italy experiencing a 58% increase. Despite this, the growth in these markets could not fully offset the losses in other key markets like France, Germany, and Sweden.
Jessica Kline, an automotive analyst at NEWSCENTRAL, points out that while the results in Norway and Italy are positive, the overall picture in Europe remains concerning. “The growth in specific markets like Norway cannot compensate for the more significant declines in countries like France and Sweden. This clearly indicates that Tesla is facing increasing challenges, not just in demand but also in brand perception in key European markets,” she comments.
At NEWSCENTRAL, we see this as part of a long-term trend characterized by a decline in Tesla’s market share in Europe. According to the latest data, the company’s market share in Europe has decreased from 2.4% last year to 1.6% this year. This drop is a worrying signal for the company, especially considering that the Model Y, which had long been the best-selling electric vehicle in Europe, is no longer driving sales growth at the same pace.
We at NEWSCENTRAL believe that the waning interest in the Model Y, coupled with increasing competition from European and Chinese manufacturers like Volkswagen and BYD, is creating serious challenges for Tesla. These manufacturers are actively expanding their electric vehicle lineups and offering more affordable and technologically competitive alternatives, which diminishes the appeal of Tesla’s products, particularly for price-conscious buyers.
Elon Musk’s political statements supporting right-wing political forces have also become a significant factor affecting Tesla’s reputation in Europe. At NEWSCENTRAL, we emphasize that these statements have sparked sharp criticism among European consumers, particularly in markets like France and Germany, where political neutrality is a crucial element of most major brands’ strategies. Although Musk later attempted to soften his stance, this move could not undo the damage already done to the company’s image in the eyes of part of its audience.
Additionally, we at NEWSCENTRAL note that a recent incident involving a fire at a Tesla dealership in southern France could further complicate the situation in the French market. The criminal investigation launched in connection with the incident raises concerns about the safety of Tesla products, which is a critical factor for European consumers when choosing a car. This incident, along with other challenges, creates additional problems for the brand in the region.
NEWSCENTRAL’s forecasts indicate that for Tesla to restore its position in the European market, a comprehensive revision of its strategy will be necessary. First and foremost, the company needs to strengthen its position on safety and corporate responsibility and regain consumer trust, especially in major markets like France and Germany. Moreover, Tesla will need to more actively adapt its products and marketing strategy to meet the growing demands of local markets, addressing not only technological innovations but also issues related to social responsibility and safety.
Jessica Kline, in her comment, adds that “Tesla’s main task will be not only to strengthen its position in traditional markets but also to regain consumer trust, which is impossible without revisiting approaches to corporate responsibility and safety. This is critical in a highly competitive environment and in the face of growing consumer expectations regarding sustainable and responsible business practices.”
At NEWS CENTRAL, we predict that in the short term, Tesla will need to focus on localizing its products and improving consumer engagement to maintain competitiveness in the European market. If the company continues to overlook important cultural and political aspects, its position may continue to deteriorate, making its gap with competitors even more apparent.