Tesla Gains Ground in Select European Markets While Facing Intensifying Competition

Tesla recorded mixed results across Europe in September, with sales rising in France, Denmark, Spain, and Norway thanks to its updated Model Y, while slumping in Sweden and the Netherlands.

Analysts warn the automaker’s limited lineup, unchanged since 2020, risks losing further ground as European and Chinese rivals introduce newer models. Tesla’s market share in the region remains under pressure despite localized gains.

Model Y drives gains in select markets

Industry data showed Tesla’s registrations climbed 20.5% in Denmark, with the revised Model Y emerging as the country’s best-selling vehicle. In France, sales rose 2.7%, while Norway posted a 14.7% increase, led by strong Model Y and Model 3 demand. Spain also recorded a 3.4% gain, boosted by a 60% rise in Model Y deliveries. These results suggest that Tesla’s mid-cycle refresh has resonated in some markets, according to Reuters.

Still, challenges persist. Sweden remained Tesla’s weakest-performing market, with September registrations falling 64% year-over-year despite showing improvement from August levels. The Netherlands also posted its ninth consecutive month of decline, with registrations down 48%.

Competitive landscape and outlook

Tesla’s European sales for January–August were down 32.6% year-over-year, even as overall EU EV sales grew nearly 25%. China’s BYD outsold Tesla in the EU in August for the second time this year, highlighting the shifting balance in the market. Analysts suggest Tesla’s lack of new mainstream models since 2020 could weigh on growth, with a more affordable Model Y expected only in 2026.

Industry experts also point to heightened consumer competition and political backlash surrounding CEO Elon Musk as additional hurdles. As European and Chinese automakers accelerate distribution networks, Tesla’s ability to sustain its foothold will depend on well it can keep its lineup compelling in an increasingly crowded market.

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