16:40 01-10-2025

Tesla’s fragile recovery in Europe: Model Y leads gains

Tesla is showing the first signs of a recovery in Europe: in September, the company’s sales edged up 2.7% in France and jumped 20.5% in Denmark. The updated Model Y stood out, topping the sales chart in Denmark. In Norway, a long-time stronghold for electric cars, Tesla also firmed its position, boosting registrations by 14.7%, with the Model Y and Model 3 taking the top two spots.

The broader European picture, however, remains challenging. In Sweden, Tesla continues to decline: just 1,726 cars were registered, 64% fewer than a year earlier. Even so, that’s a clear improvement over August, when the brand managed only 210 vehicles. The bounce is real, but it’s uneven.

The reasons are straightforward: Tesla’s lineup is aging, and no new high-volume models have arrived since the Model Y in 2020. Chinese brands have intensified the competition, led by BYD, which has already twice in 2025 outpaced Tesla in EU sales. Another headwind is the negative reaction among some buyers to Elon Musk’s political activity. In a segment that refreshes at breakneck speed, an unchanged range quickly loses its shine.

Even so, Tesla is banking on the modernized Model Y, whose European deliveries began in the summer. The crossover could rekindle interest in the brand and partially offset the downturn. Early signals from Denmark suggest the facelift resonates, though turning that spark into sustained momentum across tougher markets will be the real test.

As the 2025 EV field grows more crowded, Tesla still has to prove it remains among the top picks for European buyers. The gains in Denmark and France are encouraging, yet without a broader refresh the company risks ceding the long game to Chinese rivals. The momentum is there, but it remains fragile.