In the first quarter of 2025, Tesla sales fell in all European countries – with one notable exception.
Tesla is struggling in Europe. New figures show that the automaker's sales fell in every European country in the first quarter of 2025 – except in the UK.
On the contrary, sales have increased by six percent here. This is happening at the same time as the rest of the electric car market in Europe continues to grow.
According to the report, Tesla delivered 37 percent fewer cars in Europe in the first three months of the year compared to the same period in 2024, which was already a year of decline for the brand.
Tesla's share price drops sharply in Germany and France
The figures show that Germany – previously Tesla's largest market in Europe – has been hit hardest with a drop of 62.2 percent, dropping the country to third place among Tesla's European markets.
France follows suit with a decrease of 41.1 percent, while countries such as Belgium, Denmark, Sweden and Switzerland have also more than halved their Tesla purchases compared to the previous year.
| Country | Q1 2024 | Q1 2025 | Change |
|---|---|---|---|
| Germany | 13,068 | 4,935 | -62.2% |
| United Kingdom | 11,768 | 12,474 | +6.0% |
| France | 11,360 | 6,696 | -41.1% |
| Belgium | 7,219 | 3,019 | -58.2% |
| Denmark | 3,558 | 1,549 | -56.5% |
| Switzerland | 3,264 | 1,238 | -62.1% |
Price wars and right-wing politics may explain British exception
According to several sources, the fact that sales in the UK are going against the flow may be due to lower prices for Tesla cars – especially the Model Y. Here, the leasing price starts at just 399 pounds (approximately DKK 4,000 per month), while the same model in Germany costs over 570 euros per month (over DKK 4,200).
Another possible explanation is the difference in import conditions. Unlike the rest of Europe, the UK is not subject to EU tariffs on Chinese electric cars , which could make it cheaper to import cars made in China – like the Model Y.
In addition, many Tesla cars in the UK are purchased as company cars, often ordered months in advance.
The new luxury tax on electric cars over £40,000, which came into effect on April 1, 2025, may also have prompted many to speed up their purchases.
Tesla struggles with fire and competition
According to market analysts, Tesla's problems are not just about prices. The brand is under pressure, and competition from both European and Chinese electric car manufacturers has become much fiercer.
The Model Y has had delivery problems as a result of a design change, but that does not explain the entire decline.
Model 3 sales have also fallen by 11 percent in Europe compared to the first quarter of 2024, despite a recent update.
Several investors and analysts point to management – and Elon Musk in particular – as a contributing factor to the problems. “This is a self-inflicted problem,” are the words of several voices in Tesla circles.
