Tesla sales plummet nearly 50% in Europe – what's behind the drop?

Registrations are down in January, whilst in California they are down by double digits. The new Model Y is also to blame.

Photo by: Tesla

By: Francesco Barontini

Feb 5, 2025 at 5:06am ET

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Tesla has a problem. The American company is no longer selling, either in Europe or in the US. Or rather, it is still selling a lot, but much less than in the past. The figures for January 2025 do not leave much room for interpretation.

There are several factors behind this slump. Anticipated at the shareholders' meeting at the end of last month and now confirmed by the first figures of the new year, the reasons lie first and foremost in the behaviour of Elon Musk, who has disappointed both Americans with his support for Donald Trump and Europeans who have not liked the various interventions of the brand's CEO in the politics of the Old Continent. But there is more.

All the reasons for the collapse

One of the reasons is the low availability of cars in stock. As every year, the company pushes sales in the last quarter in order to close the accounts with a better result. But this inevitably has an impact on the start of the new year, when stocks are low.

Tesla Model 3 Performance 2024

Photo by: Tesla

Then there is the 'Juniper effect'. The Tesla Model Y, the brand's best-seller, has just been relaunched with a 2025 model year that is quite different from its predecessor. The new Model Y has recently gone on sale in China and is now available in Europe and the US, but only in the Launch Edition.

The fact that the full range is not yet available means that many potential buyers are waiting for further versions. This is why sales are slowing down. But what have all these reasons led to? Let's have a look.

Tesla Model Y (2025)

Photo by: Tesla

Sales in Europe halved

If 2024 ended badly, 2025 started even worse. On the old continent, there was a 50% drop compared to January 2024. The decline affected key markets such as those in Scandinavia (Sweden -44%; Norway -38%), where electric car registrations grew by double digits.

Negative figures were recorded in Spain, where registrations fell from 1,094 to 269 (-75.4%), and in France (from 3,118 to 1,141, -63.4%), but Tesla also fared badly in the Netherlands (from 1,610 to 926, -42%) and Denmark (from 763 to 451, -40.9%). In Italy, the figures are smaller, but the decline was also -13.4%. In Europe as a whole, we have reached an uncomfortable -47.7%.

Country	January '25	January '24	decrease %
United Kingdom	1,293	1,581	-18.2%
France	1,141	3,118	-63.4%
The Netherlands	926	1,610	-42.5%
Norway	663	1,109	-40.2%
Spain	269	1,094	-75.4%
Sweden	394	730	-46.0%
Denmark	451	763	-40.9%
Portugal	380	551	-31.0%
Italy	265	306	-13.4%

Tesla Model Y (2025)

Photo by: Tesla

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Double-digit contraction in California

To explain Tesla's current situation, you can also look at what is happening in California, the largest electric car market in the United States. For years, Elon Musk and Co. dominated the market with ever-increasing numbers. But in 2024 they will see a decline.

And while zero-emission car registrations are up 1.2%, Tesla's are down 11.6%, with almost 27,000 fewer electric vehicles delivered. Without Tesla, the Californian market is up 20%, and while the brand still leads with a 52.5% share, it's hard to ignore that it was over 60% in 2023.