Tesla’s Electric Car Sales Decline Deepens in Europe

In the first two months of 2025, Tesla faced significant challenges in Europe, with a 43% decline in sales compared to 2024. Despite this, electric vehicle sales in Europe saw a 31% increase, indicating a mixed market response.

The Model Y update was introduced in March, aimed at revitalizing Tesla's fortunes. However, March delivery data revealed a concerning trend: several European countries saw a significant drop in Tesla deliveries. France reported a 37% decrease from March 2024, while the Netherlands and Sweden saw even larger drops of 61% and 64%, respectively. Austra and Norway also experienced notable declines, though Norway saw an slight increase of 1% compared to the previous year.

Portugal, interestingly, reported a slight increase of 2% in March deliveries despite the overall decrease. This mixed performance underscores the varied reactions across Europe. Despite efforts with the updated Model Y, Tesla's March sales remain underwhelming, with some countries showing resilience and others struggling.

In contrast, Tesla has turned to China, where all versions of the updated Model Y are already available, to boost sales through incentives. This strategic move highlights Tesla's efforts to adapt to the market despite the challenges in Europe.

Tesla's European struggles are not over, and the impact of the Model Y update remains to be seen. The company's efforts in China reflect a broader strategy to address local challenges and maintain growth.