Tesla’s European sales story continues to be a tale of two very different realities. While registrations plunged across several of the continent’s largest EV markets in December 2025, the automaker delivered a breakout performance in Norway, where it set a new annual sales record and further cemented its dominance in one of the world’s most EV-friendly countries.
According to a Reuters report, Tesla registrations dropped sharply in multiple European markets last month. Sweden saw one of the steepest declines, with December registrations down 71% year-over-year, while France followed closely with a 66% drop. Sales were also weaker in Portugal, Spain, and Belgium, continuing a broader trend that saw Tesla’s market share across Europe shrink throughout 2025, despite battery-electric vehicles accounting for a growing share of overall car sales in the region.
The slowdown comes amid intensifying competition from legacy automakers and Chinese EV brands, an aging Tesla lineup, and growing political backlash in parts of Europe tied to CEO Elon Musk’s public statements. Even the introduction of cheaper versions of the Model 3 and Model Y across Europe has yet to meaningfully reverse the decline. Tesla’s softer European performance also coincided with a weaker global fourth quarter, with lower-than-expected worldwide deliveries of 418,227 vehicles.
Norway, however, remains the clear exception. Tesla registrations in the country surged 89% year-over-year in December to 5,679 vehicles, pushing the brand to a record-breaking 2025. With nearly all new car sales in Norway now electric, Tesla captured more than 19% of the market last year. The Model Y alone sold more units in Norway during 2025 than any automaker ever has across its entire lineup in a single year, highlighting just how deeply entrenched Tesla has become in the market.
Tesla’s success in Norway isn’t new. The company broke the country’s all-time annual vehicle sales record this year, and the Model Y has also overtaken the Nissan Leaf as Norway’s best-selling EV of all time. Even as demand cools elsewhere in Europe, Norway continues to showcase what Tesla can achieve in a fully electrified market with strong incentives and mature charging infrastructure.
It’s also worth noting that only eight European countries have reported full-year sales data so far, but those markets alone make up roughly half of Tesla’s European business — and there’s little reason to believe the remaining countries will tell a materially different story once their numbers are in.
Whether Tesla can replicate Norway’s momentum across the rest of Europe in 2026 remains an open question. For now, the contrast couldn’t be sharper.
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