Washington: Tesla Inc. saw only limited improvement in new vehicle registrations across key European markets in January, underscoring the ongoing challenges facing the U.S. electric-vehicle maker in one of the world’s most dynamic automotive regions. The latest data reveal that demand remains fragile after a steep downturn in 2025, despite efforts by the company to reinvigorate sales with revised pricing and product updates.
Registrations a commonly used proxy for actual sales presented a mixed picture at the start of the year. Sweden and Denmark posted year-on-year increases of 26 % and 3 % respectively, but these gains came from very low bases, with only 512 and 458 Teslas registered in January. In contrast, other important markets saw pronounced declines: Norway recorded an 88 % plunge to a mere 83 vehicles, and registrations in France dropped 42 % to 661 units.
The uneven performance highlights Tesla’s struggle to regain traction after a difficult 2025, when overall European registrations for the company’s cars fell sharply down about 27 % over the full year. This contraction came even as the broader market for battery-electric vehicles continued expanding, with alternatives from rival manufacturers gaining ground.
Industry observers point to several forces shaping Tesla’s subdued recovery. Competition has intensified with a wave of new models from both established European brands and rapidly growing Chinese automakers. Notably, China’s BYD witnessed a substantial increase in Europe last year, registering many more vehicles compared with Tesla’s declining volumes, signaling a shift in consumer preferences toward value-oriented alternatives.
Tesla’s own responses have included the rollout of lower-priced versions of its popular Model Y and Model 3 across the U.S. and European markets. These moves were aimed at countering both price pressure and the company’s ageing model lineup. However, analysts say that such measures have not yet translated into a sustained rebound in registrations.
Beyond market competition and product lineup issues, Tesla’s brand perception has also been a factor in Europe. The company’s CEO, Elon Musk, has courted controversy in the region due to political engagements and statements that have polarized some consumers. Although the direct impact of these controversies on vehicle demand is difficult to quantify, they have contributed to a broader narrative of challenges for the brand in European markets.
The outlook for Tesla’s performance in Europe in 2026 remains uncertain. While overall electric-vehicle adoption in the region shows continued strength, capturing a larger share of that growth will require Tesla to not only refine its pricing and product strategies but also to address the intensifying competitive pressures from other automakers. In the coming months, industry watchers will be closely looking at whether Tesla can arrest its decline and build more consistent momentum across the continent.