Tesla’s challenging year in European markets persisted through August, with the electric vehicle manufacturer recording significant registration declines across several key territories despite overall automotive market growth in the region.
According to market data released Monday, Tesla registrations plummeted 47.3% in France during August compared to the same period in 2024, even as the broader French automotive market expanded by nearly 2.2%. The decline was more pronounced in Sweden, where Tesla registrations dropped more than 84% while the overall market grew 6%.
Similar patterns emerged across other European markets, with Tesla registrations falling 42% in Denmark, 50% in the Netherlands, and 4.4% in Italy during the August reporting period.
However, Tesla did see positive movement in select markets. Norway, where the company has established strong market presence and electric vehicles dominate new car sales, reported a 21.3% increase in Tesla registrations. Portugal recorded a 28.7% rise after seven consecutive months of declines, while Spain showed a notable 161% increase to 1,435 vehicles from 549 units in August 2024.
Despite these gains, Tesla faces intensifying competition from Chinese manufacturer BYD, which demonstrated remarkable growth across European markets. In Norway, BYD registrations surged 218%, while Spain saw BYD sales increase more than 400% to 1,827 vehicles, surpassing Tesla’s monthly totals in that market.
The year-to-date figures underscore the competitive pressure Tesla faces. In Spain, BYD’s sales have jumped 675% to 14,181 vehicles through August, compared to Tesla’s 11.6% increase to 9,303 vehicles over the same period.
“Disappointing Tesla volumes can partially be attributed to a more competitive market environment,” said Matthias Schmidt, European automotive market analyst at Schmidt Automotive Research, in comments to Reuters.
Tesla’s market share in Western Europe declined to 1.7% in the first half of the year from 2.5% in 2024, according to industry data. The company has attributed some of the sales decline to production transitions for an updated version of its Model Y, which was Europe’s top-selling vehicle in 2023.
While deliveries of the revamped Model Y began across much of Europe in June, August sales data showed continued weakness, with the model posting 46.5% and 87% declines in Denmark and Sweden, respectively.
Industry observers point to several factors contributing to Tesla’s European challenges. The company has maintained a relatively small product lineup and has not launched a new mass-market model since introducing the Model Y in 2020, while competitors have expanded their offerings significantly.
Additionally, Tesla’s pricing strategy of dramatic reductions in 2023 has contributed to a robust used vehicle market, with secondary market sales potentially impacting new vehicle demand. UK data from Marketcheck indicated used Tesla sales reached record levels in July, increasing 270%, while average prices for used Model Y vehicles declined 41% over two years.
The competitive landscape continues to evolve as traditional automakers and new Chinese entrants introduce additional electric vehicle options across European markets, creating increased choice for consumers in the rapidly expanding EV segment.