Tesla's European sales have declined for five consecutive months, with a year-on-year drop of 36.2% in Germany, while the Norwegian market has become a highlight

In May, Tesla's sales nightmare continues.

Tesla's sales in major European markets (including the UK, Germany, Italy, Spain, Portugal, Denmark, and Sweden) continued to decline in May, marking the fifth consecutive month of poor performance.

In Germany, Tesla's sales in May plummeted by 36.2% year-on-year, while overall electric vehicle sales in Germany surged by 44.9% during the same period; in the UK, Tesla's sales fell by more than 45%, pushing it out of the top four electric vehicle sales, ranking fifth.

Analysts generally attribute this to intensified market competition and brand damage, particularly the negative impact of Musk's political stance, such as supporting far-right parties and opposing unions.

Notably, in the Norwegian market, Tesla's sales skyrocketed by 213%. This is mainly due to the delivery of the new Model Y and the generous electric vehicle incentive policies from the Norwegian government. Nevertheless, the negative impact of political factors is also beginning to show.

Sales slump in Germany, the UK, and Italy: Can the new Model Y turn the tide?

In most parts of Europe, Tesla's electric vehicle sales faced a significant setback last month. Data from the European Automobile Manufacturers Association (ACEA) shows that Tesla's overall sales in Europe plummeted by 49% in April.

According to data released by the German Federal Motor Transport Authority (KBA) on Wednesday, Tesla sold only 1,210 vehicles in Germany in May, a year-on-year drop of 36.2%, while overall sales of pure electric vehicles in Germany surged by 44.9% during the same period. Analysts attribute this to intensified competition and brand damage.

In the UK's largest electric vehicle market, Tesla's sales in May fell by more than 45%, while the overall industry sales rose by 28%. Research firm New AutoMotive's data shows that Tesla has been pushed out of the top four, falling to fifth place in electric vehicle sales in the UK, behind Volkswagen, BMW, and Volkswagen's Audi and Škoda brands.

A Tesla spokesperson in the UK explained in an email sent to some media on Tuesday evening that the decline in May sales was due to the company clearing out old Model Y inventory while waiting for the new version produced by the Berlin factory. The spokesperson stated that the company is "easily receiving customer orders" in the UK and expects sales to increase in June.

Data from the Italian market further confirms Tesla's predicament. In May, the company's sales in Italy fell by 20%, while overall electric vehicle sales in Italy rose by 40.8% during the same period.

In Spain, Tesla's new car sales in May decreased by 29% year-on-year to 794 vehicles. In the first five months of 2025, Tesla's sales in Spain dropped by 19% compared to the same period last year, while total electric vehicle sales (including fully electric and hybrid vehicles) grew by 72%.

Additionally, industry organizations in Portugal, Denmark, and Sweden reported significant declines in Tesla's new car sales in May. Analysts attribute this to intensified competition and brand damage.

Recently, Musk spent nearly $300 million to help Trump get re-elected and officially supported the far-right German party AfD. He has also been firmly opposed to unions, leading to conflicts between Tesla and Scandinavian labor organizations. In response, Tesla dealers across Europe have erupted in protests

Norway stands out, Tesla sales surge 213%

It is noteworthy that the Norwegian market, which has begun delivering the new Model Y, shows positive signals. According to data from the Norwegian Road Federation (OFV), Tesla's new car sales in Norway surged from 832 units in the same period last year to 2,600 units in May, a staggering increase of 213%.

Rico Luman, a senior transport logistics economist at ING Bank Netherlands, described this data as "quite astonishing" and pointed out that Norway's rich electric vehicle incentive policies make purchasing a pure electric vehicle "almost a no-brainer."

Norway's electric vehicle incentive policies include exemptions from value-added tax, discounts on road and parking taxes, and the right to use bus lanes. The government has also heavily invested in public charging infrastructure, allowing many Norwegian households to charge their cars at home.

Luman from ING believes that the rebound in Tesla's sales in Norway is mainly due to the first deliveries of the revamped Model Y SUV, suggesting that "customers delayed new Tesla orders to wait for the new version, which explains part of the sales decline in the first few months of this year." Christina Bu, Secretary-General of the Norwegian Electric Vehicle Association (NEVA), stated that the popularity of the Model Y is due to its "value for money, meeting Norwegians' needs for ample luggage space, high ground clearance, all-wheel drive, and a tow hitch."

However, even in Norway, Tesla's best-performing market in Europe, the negative impact of political factors is beginning to show. A survey conducted by NEVA of over 15,000 electric vehicle drivers revealed that as many as 43% of respondents indicated they would not purchase a Tesla for political reasons.

Tesla China's electric vehicle sales in May fell 15% year-on-year, marking the eighth consecutive month of decline

Meanwhile, according to data released by the China Passenger Car Association on Wednesday, the delivery volume of Tesla's China-made Model 3 and Model Y in May was only 61,662 units, a year-on-year drop of 15%, a significant increase from the 6% decline in April. Although there was a slight month-on-month increase of 5.5% compared to April, this seems unable to mask the harsh reality Tesla is facing.

Last week, the company launched a smart assisted driving feature transfer service in China, allowing users to transfer this feature to new cars before the end of June—this almost "buy one get one free" promotional strategy indirectly exposes the significant sales pressure Tesla is under.

The Model 3 and Model Y have been included in domestic rural electric vehicle promotion activities for the first time this year. Some analysts suggest that this actually reflects Tesla's need to extend its reach to previously neglected lower-tier markets in search of new growth points