Tesla is struggling in Europe as its sales continue to tumble while competitors in the electric vehicle (EV) market experience significant growth.
The US-based automaker's recent slump in key European markets highlights a sharp contrast with the overall booming EV industry.
According to Reuters, Tesla's car registrations—a common measure of sales—plummeted in October compared with the previous month. Sweden saw a dramatic 89 percent drop, Denmark 86 percent, Spain 31 percent, and Norway 50 percent.
Meanwhile, overall EV sales in Europe rose 119 percent during the same period, underscoring Tesla's declining market share.
The company has faced falling registrations in Sweden and the Netherlands for several months, though it did see a modest 2.4 percent increase in France, Gizmodo reported.
Analysts point to growing competition from Chinese EV manufacturers, which have introduced new models that appeal to European buyers.
Tesla's political controversies, particularly involving CEO Elon Musk, are also blamed for dampening the brand's image abroad.
Musk has made headlines in both the US and Europe for his political statements, including remarks about British politics, which have sparked backlash in some markets.
Earlier this year, Tesla executives attributed weak sales to disruptions from a refreshed Model Y rollout.
"Production disruptions occurred as the company rolled out a refreshed design," they said, but several months later, registrations in major markets remain low.
🚨 @Tesla Sales Collapse Across Europe Even as Board Weighs @elonmusk's $1 Trillion Pay Package.
— Tech Startups (@thetechstartups) November 3, 2025
Europe’s love affair with Tesla is cooling fast.
📉 Down 89% in Sweden
📉 Down 86% in Denmark
📉 Down 50% in Norway
🇨🇳 Meanwhile, BYD continues to climb as Tesla’s European momentum… pic.twitter.com/qaa9OoHlJ5
Tesla Sales Plunge 50% in Germany
In Germany, Europe's largest auto market, EV registrations climbed 38 percent through September, while Tesla's sales fell 50 percent over the same period.
According to Cryptopolitan, despite European challenges, Tesla reported record third-quarter sales in the United States, largely driven by buyers rushing to take advantage of the $7,500 federal EV tax credit before it expired on September 30.
In contrast, Europe saw no similar incentive-driven rush, and Tesla continues to face obstacles including an aging product lineup and public scrutiny of Musk's political involvement.
Tesla's troubles are not limited to sales. The company faces a lawsuit in the US following a fatal crash in Wisconsin last November.
The complaint alleges that Tesla's design choices, including door handles and battery placement, created a "highly foreseeable risk" that trapped occupants inside a burning vehicle.
Lawyers for the family of the victims claim Tesla "disregarded these principles, instead manufacturing vehicles prone to fires that ignite and spread rapidly upon impact."
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