Wedoany.com Report-Nov. 4, Tesla reported a sharp decline in sales across several European markets in October, highlighting ongoing challenges for the U.S. electric vehicle maker on the continent. Local industry data showed new car registrations, a proxy for sales, fell 89% in Sweden, 86% in Denmark, 50% in Norway, and 48% in the Netherlands. In Spain, sales dropped 31%, while overall sales of fully electric and plug-in hybrid vehicles in the country rose 119%. In contrast, Tesla posted a modest sales gain in France for the second consecutive month.

Norway remains an exception, where Tesla has long held the largest market share in a country where nearly all new vehicles sold are electric. Despite the October decline, Tesla continues to be a dominant player there, although growth has slowed after several months of increases.

The broader European sales drop reflects Tesla’s small and aging vehicle lineup, which is increasingly challenged by newer EV models from legacy manufacturers and Chinese competitors. Through September, Tesla’s sales in Europe were down 28.5% compared with the first nine months of 2024. Analysts point to intensifying competition as well as changing consumer preferences as key factors.

Chinese EV brands have made significant inroads. In Denmark, Tesla was outsold by BYD, Xpeng, and Geely’s Zeekr. In Spain, Tesla sold just 393 vehicles in October, far fewer than SAIC’s MG brand (3,725 cars), BYD (2,806 cars), and Chery’s Omoda and Jaecoo brands, which sold 1,433 and 974 cars respectively. In Sweden, Tesla’s 133 units were outpaced not only by mainstream brands but also by luxury German automaker Porsche, which sold 172 cars. Year-to-date through October, Tesla’s Swedish sales are down 67% compared with the same period last year.

Industry observers note that European consumers now face a wide range of EV options from both established automakers and ambitious new entrants from China. Ginny Buckley, CEO of electric-car advice site Electrifying.com, said: "Car buyers have more choice than ever, with an influx of new EVs from established manufacturers and ambitious newcomers from China. Tesla no longer has the market to itself and that seems to be showing in its sales figures in Europe."

Research manager Ciara Cook at New AutoMotive added that registrations for mainstream European brands such as Fiat, Volvo, Suzuki, and Mazda fell 15% to 18% through September as they updated vehicle offerings, while Tesla’s EU sales fell nearly 39% during the same period. Cook also noted: "The Musk factor looks like it is contributing the difference."

Overall, Tesla’s October sales in Europe illustrate the increasing competitiveness of the continent’s EV market. With new models from both European and Chinese manufacturers capturing consumer interest, Tesla faces growing pressure to update its product lineup to maintain its market share.