Tesla’s (TSLA.O) sales in Scandinavia and France experienced a significant downturn in February compared to the previous year, eroding its market share in these key regions. This decline has sparked a brand loyalty test for the electric vehicle manufacturer, coinciding with CEO Elon Musk’s controversial public persona.
In Norway, Sweden, and Denmark, where Tesla’s cars topped sales charts in 2023 and 2024, the company has slipped behind competitors with updated model lineups, such as Volkswagen (VOWG_p.DE) and Toyota (7203.T), according to recent registration data. Sales in Sweden saw a 42% year-on-year decrease with 613 new Teslas registered, while Norway and Denmark experienced similar drops of 48% with 917 and 509 registrations, respectively, despite overall growth in the EV market.
Furthermore, Tesla registrations in France declined by 45% during the first two months of the year compared to the same period in 2024. This trend continues the negative trajectory observed in the European market. In 2024, the Model Y was the best-selling EV and the 10th overall best-selling car in France; However, in the current year, the Model Y’s rank has fallen to 27th, with electric models like the Peugeot 208, Renault 5, and Citroen e-C3 outselling it.
Elon Musk’s public political endorsements and actions have sparked controversy, leading to calls for boycotts. The company did not immediately respond to requests for comment.
In Norway, where nearly all new cars sold are electric, Tesla’s share of overall car sales has fallen to 8.8% year-to-date, a significant drop from its market-leading 18.9% in 2024 and 20% in 2023.
The company faces an additional challenge with its aging vehicle lineup. Tesla is preparing to launch an upgraded European version of its Model Y mid-size SUV, which has been the best-selling car in Scandinavia for the last two years. However, the Norwegian Road Federation (OFV) expressed uncertainty whether Tesla could regain its position. “The brand has had a unique market position in Norway for several years. Whether that will continue is uncertain, because there is a lot of unrest and noise around Tesla and Elon Musk,” the OFV stated.
In Denmark, the Danish Federation of Motorists (FDM) reported that a growing number of prospective buyers are seeking alternatives to Tesla. FDM chief adviser Ilyas Dogru noted, “A lot of people start by saying, ‘I want to buy an electric car, but I don’t want it to be a Tesla’… The political consumer has always been there, but it’s more pronounced with Tesla now.”
Atle Falch Tuverud, editor-in-chief of the Norwegian auto trade publication BilNytt, commented that Musk appears to have become the brand’s biggest challenge, adding, “There is little doubt that Tesla has now lost some of its existing customers, and it is absolutely certain that they have lost some of their potential customers”. The impact on sales could take months to fully assess.
The redesigned Model Y is expected to begin shipments between March and June in Europe. FDM’s Dogru suggested the company might also consider more aggressive pricing strategies in the face of increasing competition.
Reporting by Terje Solsvik in Oslo and Louise Rasmussen in Copenhagen, additional reporting by Gilles Guillaume in Paris; Editing by Sharon Singleton and Bernadette Baum
