Tesla has taken a heavy hit in Sweden, where new car registrations dropped by 84% in August compared with a year earlier, according to industry group Mobility Sweden. Only 210 Teslas were registered last month, down sharply from 1,348 in August 2024.
The fall is especially striking given that Sweden’s broader car market actually grew during the same period, with total new passenger vehicle registrations rising 6% year-on-year to 20,168 units. Tesla’s flagship Model Y, typically its strongest performer, suffered an even deeper decline of 87%.
This slump is not confined to Sweden. Across Europe, Tesla’s sales momentum has been faltering for months. In France, registrations slid 47% in August to 1,331 units, while Denmark recorded a 42% decline, with just 473 Teslas hitting the road. Altogether, Tesla’s downturn in Europe has stretched into an eighth consecutive month of declines. The numbers underline how quickly the company’s position has eroded: in July, it sold only 8,800 vehicles across Europe, a 40% drop from the year before. For the first seven months of 2025, deliveries totaled 119,000 units, down from 179,000 during the same period in 2024, a loss of nearly one-third of its European volume.
Several factors are behind the sharp contraction. Analysts point to intensifying competition, particularly from Chinese automakers such as BYD and SAIC, which are winning over European buyers with cheaper and newer electric models. Tesla, in contrast, has not launched a fresh mass-market car since 2020, and even the relaunch of its Model Y has failed to generate renewed enthusiasm. Brand perception may also be weighing on sales, as Elon Musk’s outspoken political activity has alienated some European consumers. On top of that, aggressive price cuts in markets like the UK have weakened demand for new Teslas by making used models more attractive bargains.
Tesla’s shrinking footprint is reflected in its overall market share. In Western Europe, its slice of the car market has fallen from 2.5% in 2024 to around 1.7% in 2025. In Sweden, the picture is even more troubling: from January through August, Tesla’s sales are down 66% compared with the same stretch of last year.
For a company that once dominated Europe’s EV revolution, the latest figures suggest Tesla is struggling to hold its ground in the face of stronger competition, shifting consumer sentiment, and an aging product lineup.
