Tesla's European opening is bleak: January sales in France hit a three-year low, and registrations in Norway plummeted by 88%

Wallstreetcn
2026.02.02 12:33
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Tesla's performance in core European markets in January was dismal: sales in France hit a three-year low, down 42% year-on-year; Norway saw a sharp decline of 88% due to tightening tax policies. Faced with brand boycotts triggered by Musk's political stance and dual competitive pressure from Chinese and European car manufacturers, its market share is rapidly declining against the backdrop of industry growth

Tesla's sales difficulties in the European market have further intensified at the beginning of the new year, as the electric vehicle manufacturing giant has seen a significant decline in registrations in two major electric vehicle markets in the region, highlighting the multiple challenges it continues to face on the European continent.

According to data released by the French Automobile Association (PFA) on Sunday, Tesla's sales in France in January plummeted by 42% year-on-year, selling only 661 vehicles, marking the lowest level in over three years. In Norway, which performed relatively well in the European market last year, Tesla's registrations in January dropped by 88%.

This sales decline continues Tesla's overall downturn in Europe in 2025. Last year, Tesla's sales in Europe fell by 27%, while the overall registration of electric vehicles in Europe grew by 30% during the same period.

Tesla's loss of market share in Europe is influenced by consumer boycotts stemming from Elon Musk's political stance, as well as increasing competitive pressure from local automakers such as Volkswagen and Stellantis, as well as Chinese manufacturers like BYD.

French Market Hits Rock Bottom

France is the third-largest electric vehicle registration market in Europe, following Germany and the UK. However, Tesla's performance in this market has fallen to its lowest point since July 2022.

In January, Tesla's sales in France were even lower than those of Volkswagen's Cupra brand or Stellantis's Jeep brand. This data highlights that Tesla's competitive position in major European markets is being weakened.

The significant decline in Tesla's demand in Europe in 2025 is partly due to consumer boycotts against Musk for working with the Trump administration and supporting right-wing figures in countries like Germany and the UK.

Norwegian Market Takes a Sharp Turn

Norway was once one of the few bright spots for Tesla in Europe. In 2025, Tesla's registrations in Norway grew by 41%, partly due to consumers rushing to purchase vehicles before policy changes took effect.

However, this trend came to a sudden halt in January. The Norwegian government tightened VAT exemption regulations last month, leading to a 76% decline in industry sales in January, with Tesla's registrations plummeting by 88%.

The impact of this policy adjustment shows that Tesla's previous sales growth in Norway largely relied on tax incentives rather than the brand's own market competitiveness.

Intensifying Competitive Pressure

The competitive environment Tesla faces in Europe is deteriorating. On one hand, local European automakers led by Volkswagen and Stellantis are increasing their investments in electric vehicles; on the other hand, Chinese manufacturers represented by BYD are also actively expanding into the European market.

According to data from the European Automobile Manufacturers Association, Tesla's sales fell by 27% in 2025, while the overall registration of electric vehicles in Europe surged by 30%. This means Tesla is rapidly losing market share.

Currently, one in every ten cars sold in Europe comes from Chinese brands, further intensifying the competitive pressure on Tesla