Tesla’s struggle in Europe deepened in August as sales of its electric vehicles slumped sharply across key markets, extending a downturn that has now lasted eight consecutive months. According to registration data, the U.S. automaker saw a 47.3% drop in France, an 84% collapse in Sweden, a 42% decline in Denmark, and a 50% fall in the Netherlands. These losses came despite overall growth in Europe’s car market, underlining the scale of Tesla’s problems in the region.
Not all markets moved against Tesla. Sales rose 21.3% in Norway, a country where almost all new cars are electric, and surged 161% in Spain, helped by generous EV subsidies. However, rival Chinese automaker BYD outpaced Tesla in both countries, with sales skyrocketing 218% in Norway and more than 400% in Spain. Analysts cautioned that Tesla’s spike in Spain may have been inflated by a large shipment arrival, suggesting that quarterly numbers would give a clearer performance picture.
Industry experts point to several structural issues weighing on Tesla in Europe. The company has not introduced a new mass-market model since the Model Y in 2020, leaving it with a limited and aging lineup as competitors—both Chinese brands and legacy automakers—flood the market with fresh offerings. Deliveries of a revamped Model Y began in June, but the refresh has so far failed to lift sales, with declines of nearly 87% in Sweden and 46.5% in Denmark in August.
Beyond product challenges, Tesla is facing growing reputational damage tied to CEO Elon Musk. His outspoken political views, including support for Donald Trump and far-right movements in Europe, have sparked consumer backlash. A survey by Electrifying.com found that more than half of respondents said Musk’s influence had put them off buying a Tesla, raising concerns that the brand’s appeal is eroding.
Tesla’s woes are further compounded by the used-car market, where plunging resale values have made secondhand Teslas more attractive than new purchases. Marketcheck data shows used Tesla sales in the UK surged 270% in July, with the average price of a used Model Y down 41% from a year earlier. Analysts warn that without new models and a reset of consumer sentiment, Tesla risks losing further ground to aggressive competitors like BYD, whose European momentum continues to accelerate.
