What’s going on here?
Tesla’s car sales nosedived in Europe last month, with October registrations dropping by up to 89% in Sweden and 86% in Denmark—while fresh rivals and changing views left the EV leader scrambling.
What does this mean?
Tesla’s long reign at the top of Europe’s electric vehicle (EV) market faces real turbulence. October saw dramatic sales slides in Scandinavia—down nearly 90% year-on-year in Sweden and Denmark, and 50% in Norway, where Tesla has typically led the charge. Even in France, modest growth of 2.4% lagged behind the broader EV scene. Across the region, Tesla’s year-to-date figures through September were off almost 29% from the same stretch in 2024. The pressure is coming from all sides: Chinese automakers like BYD, Xpeng, and Zeekr are launching popular, affordable models that are topping charts in places like Denmark, while luxury names like Porsche have now surpassed Tesla in Sweden. Add in a limited range of Tesla options and rising European pushback—including some tied to CEO Elon Musk’s polarizing public profile—and it looks like the US company’s star power might be fading.
Why should I care?
For markets: Competition reshapes the leaderboard.
Tesla’s downturn signals a shake-up for Europe’s EV scene. With Chinese upstarts and legacy names rolling out more models and stepping up their game, Tesla’s head start is fading fast. Market watchers are starting to look beyond old favorites, paying closer attention to which companies are building momentum for the long haul.
The bigger picture: Europe’s EV landscape is up for grabs.
Europe’s car market is being rewritten as brand image and adaptability move into the spotlight alongside innovation. Political debates around Tesla’s leadership have fueled local resistance, showing companies that reputation matters just as much as technology. With tighter emission rules on the way, how automakers navigate policy and shifting consumer preferences now looks more important than ever.
