Tesla’s car sales in several European markets, including Sweden and Portugal, continued to decline for a fifth consecutive month, citing CEO Elon Musk’s political activities and outdated model lineup. However, Norway provided a lone bright spot with the rollout of revamped Model Y versions.
Despite this, Tesla’s U.S.-listed shares dropped 2.2% in pre-market trading. The company has not launched a new mainstream model since 2020, while traditional automakers are rushing to produce more affordable electric cars and Chinese rivals like BYD are entering the European market.
Electric vehicle sales in Europe rose by almost a quarter in May, according to data from PFA in France. In Norway, Tesla’s Model Y sales jumped 213% in May, with purchases rising to 2,346 from 690. The company is offering interest-free loans for the new Model Y to stimulate demand.
Tesla’s performance in Norway suggests that innovative strategies can be key to success. However, analysts warn that the company faces intense competition in many markets, including Sweden, where sales of Volkswagen’s electric ID.7 were almost twice those of the Model Y.
As Tesla prepares to roll out the refreshed vehicle in more European markets from this month, it remains to be seen whether the company can reverse its sales slump and regain market share.
Source: https://www.reuters.com/business/autos-transportation/teslas-european-sales-rout-continues-new-model-y-boosts-norway-deliveries-2025-06-02