New Tesla registrations retreated across key European markets during October, after an attempt to reinvigorate demand with a refreshed Model Y priced at €40,000 fell flat - another sign of a challenging period for Elon Musk's electric automaker as it battles aggressive competition from the East.
Official figures released this week indicate a broad reduction in deliveries, led by a 58% fall in France to 1,593 vehicles according to the Plateforme Automobile (PFA).
Sweden reported a 59% decrease to 1,466 units based on data from Mobility Sweden, mirroring downward trends across the continent.
Other key territories saw volume contracting 49% to 534 units in Denmark and 47% to 425 units in Portugal, while the Netherlands saw deliveries drop 44% to 1,627 units and sales in Spain retreated 9% to 1,523 units.
Tesla’s year-to-date market share in Europe through October stands at 1.6%, down from 2.4% in the comparable 2024 period.
Regional outliers and a flailing reputation
Norway and Italy diverged from the wider trend, with Norwegian Tesla registrations nearly trebling to 6,215 and exceeding the nation’s annual sales record, according to the Norwegian Road Federation (OFV).
Tesla Model Y registrations alone in Norway increased 19% to 3,648 units.
Analysts attribute this specific divergence to a consumer 'pre-buy' rush ahead of tighter vehicle tax exemptions scheduled for January 2026, alongside the nation's imminent 2025 deadline to phase out internal combustion engine sales completely.
In Italy, registrations increased 58% to 1,281, though the brand remains down 28% year-to-date in that market.
Sales momentum stalled late last year following controversial political commentary from company leadership, and although Musk has reduced public engagement since departing the U.S. Department of Government Efficiency, European business performance has not stabilised.
Operational challenges also emerged in November when a fire at a dealership in Southern France prompted a criminal investigation.
A study by advisory firm Escalent indicates 38% of respondents in Europe's top five markets believe the brand's novelty has eroded, while competitors scored higher on design and quality indices in the same survey.
BYD sales up yet again
Chinese manufacturer BYD recorded growth by leveraging a portfolio that includes plug-in hybrids, reaching 3,526 registrations in Italy for the month.
In Spain, BYD volumes surged 268% to 2,934, while the Netherlands saw a 65% increase to 570 units, which marks a national record for the brand.
