Tesla (TSLA, Financials) saw a sharp decline in vehicle registrations across France and Scandinavia in February, marking a significant drop in market share as the electric vehicle manufacturer faces mounting competition and political backlash.
Industry data shows that Tesla registrations in Sweden dropped 42% year over year; in Norway and Denmark, decreases were reported at 48%. In France, in the first two months of 2025, Tesla’s registrations fell 45% from last year’s equivalent. The drop contrasts with growing demand for electric cars in several areas.
The Norwegian Road Federation reports that the company’s market share in Norway dropped from 18.9% in 2024 and 20% in 2023 to 8.8% year to date. Once a top-seller in the area, Tesla’s Model Y has dropped in position as rivals release more recent versions. Once the top-selling electric vehicle in France by 2024, the Model Y currently stands 27th in sales behind rivals such as the Peugeot 208, Renault 5, and Citroen e-C3.
The fall coincides with growing criticism of CEO Elon Musk’s political activity, including his backing of former U.S. President Donald Trump. Musk’s actionsincluding support of far-right opinions in Europe and calls for broad reductions in the U.S. government workforcehave resulted in protests and customer backlash in many locations.
Industry analysts see a developing consumer trend in Denmark wherein potential EV purchasers are actively looking for alternatives to Tesla. The Danish Federation of Motorists claims many consumers begin by stating they want an electric vehicle but not a Tesla.
Although Tesla is expected to present a redesigned Model Y in Europe in March, experts are not sure whether the company can reclaim ground lost. To get momentum, some industry analysts advise Tesla could have to engage more fiercely in pricing competition.
This article first appeared on GuruFocus.
