Tesla's European Slump Worsens Despite Cheaper Models

Tesla Inc. (NASDAQ:TSLA) saw registrations decline across several major European markets in December, despite sales surging in Norway.

The U.S. automaker has faced slowing European sales since late 2024 as it grapples with intense rivalry.

Tesla is also expected to report a sharp decline in global fourth-quarter deliveries, Reuters reported on Friday.

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Despite rolling out lower-priced versions of the Model Y and Model 3, Tesla has yet to reverse the downturn.

In France, registrations plunged 66% in December and fell 37% for the full year.

Sweden saw an even steeper drop, with December registrations down 71% and annual sales sliding 70%.

Tesla also posted declines in Portugal and Spain, where full-year sales fell 22% and 4%, respectively.

By November, Tesla's market share across Europe, the U.K., and the European Free Trade Association slipped to 1.7% from 2.4% a year earlier.

Meanwhile, electric vehicles captured 19% of the overall car market.

Norway Stands Out As A Bright Spot

Norway stood out as a bright spot.

Tesla registrations surged 89% in December to 5,679 vehicles, surpassing the brand's 2025 market share above 19% and marking a record sales year in a country where nearly all new car purchases are electric.

Chinese EV Makers Gain Ground

Chinese electric vehicle makers are rapidly expanding in Europe, capturing a record share of the region's EV market as they push aggressively into new countries and segments.

Automakers from China claimed a record 12.8% share of Europe's EV market in November, led by brands such as BYD Co Ltd (OTC:BYDDY), Stellantis NV (NYSE:STLA)-backed Leapmotor, and Chery.

Chinese-made hybrid vehicles also crossed a 13% market share across the EU, EFTA countries, and the U.K.

BYD is driving much of the momentum, posting nearly 222% year-over-year sales growth in Europe in November, while its rivals, such as Tesla, reported declining sales.

BYD is also preparing to introduce a kei-class electric vehicle to the European market, pending regulatory approval.

Chinese automakers have significantly increased exports, with shipments to Europe rising 63% year-over-year and total vehicle exports increasing by more than 87%.

Meanwhile, companies like XPeng Inc. (NYSE:XPEV) are accelerating their European push by entering smaller markets such as Estonia, Lithuania, and Latvia.

TSLA Price Action: Tesla shares were up 1.59% at $456.87 during premarket trading on Friday, according to Benzinga Pro data.

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