Tesla’s sales in the European electric vehicle (EV) market continues to weaken, with new data showing significant year-over-year declines in Sweden, Portugal, and Spain, while overall EV adoption is increasing across the region.
Sweden: Sales Cut in Half
In Sweden, Tesla’s new registrations fell 53.7% in May compared to the same month last year. The company sold just 503 vehicles, a drop from 1,086 units in May 2024, according to figures from Mobility Sweden. While the sales were a drop compared to the same month last year, they were a rebound from April’s 2.5-year low of 203 vehicles, but it was only enough to rank the automaker twelfth among all brands in Sweden last month.
The Model Y dominated Tesla’s sales in Sweden with 454 units, followed by 48 Model 3 sedans and a single Model X. To help boost sales Tesla introduced local incentives and financing offers, including 0% interest on Model Y purchases through June 30, but those have done little to reverse the declining trend.
Spain: Market Share Shrinks
In Spain, Tesla’s May sales dropped 29% year-over-year to 794 units. This decline came as the broader market for electrified vehicles — including fully electric and hybrid models — grew by 72%, according to Spain’s automotive industry group ANFAC.
Tesla’s reduced presence is being overshadowed by the explosive growth of Chinese automakers. BYD saw sales rise 745%, MG gained 87%, and Omoda surged 213% year-to-date. Over the first five months of 2025, Tesla’s sales in Spain fell 19% compared to the same period in 2024, despite increasing interest in EVs across the country.
Portugal: Sharpest Decline in Southern Europe
Tesla’s downturn was most severe in Portugal, where registrations plummeted 68% in May to just 292 vehicles. Cumulative sales from January to May are down 36% year-over-year, according to the Associação Automóvel de Portugal (ACAP).
As in Spain, Tesla’s competitors are rapidly filling the gap. The combination of a limited product lineup, relatively high prices, and rising political controversy around CEO Elon Musk has contributed to Tesla’s waning popularity in the region.
Despite the setbacks, Tesla remains focused on long-term growth in Europe, preparing for the expansion of FSD, which is still being held up by regulatory approval issues. Yet, with aggressive pricing and rapid innovation from Chinese and legacy European brands, regaining momentum in these key markets may prove challenging, even with the launch of FSD.
