Tesla’s Europe problem deepens as Norway sales collapse 88%

Tesla registrations across major European markets showed little sign of recovery in January, highlighting the U.S. electric carmaker’s ongoing struggle to regain momentum after a sharp decline last year.

Data released on Monday showed mixed results for Tesla (TSLA) in one of the slowest months for car sales. Registrations rose in Sweden and Denmark but fell sharply in France and Norway, two key electric vehicle markets.

Tesla registrations in Europe

In Sweden, Tesla registered 512 vehicles in January, up 26% from the same month last year. Denmark also posted a modest increase of 3%, with 458 cars registered.

But the picture was far weaker elsewhere. In Norway, long seen as one of Europe’s most loyal and advanced electric vehicle markets, Tesla registrations fell 88% to just 83 vehicles. In France, registrations dropped 42% to 661 units.

Registrations are widely used as a proxy for sales and offer an early signal of demand trends in the European EV sales market.

Electric vehicle market competition intensifies

Tesla’s weak start to the year follows a difficult 2025, when its European market shrank by 27%. This decline came despite an overall rise in battery-electric vehicles sales across the region.

Last year, Tesla introduced cheaper versions of its Model Y and Model 3 in both the United States and Europe. The move aimed to refresh an ageing product line and respond to growing pressure from rivals such as China’s BYD, which has been expanding aggressively in Europe.

Brand challenges go beyond pricing

Despite lower prices, Tesla has struggled to win back market share. Analysts and investors have pointed to intensifying competition, as well as reputational challenges linked to CEO Elon Musk.

Musk’s public backing of European far-right figures, alongside his role leading U.S. President Donald Trump’s Department of Government Efficiency, has drawn criticism in parts of Europe and may be weighing on consumer sentiment.

For now, January’s figures suggest that price cuts alone may not be enough to restore Tesla’s dominance in the European electric vehicle market.

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