Preliminary Data Shows Tesla Sales In Europe Continued To Fall In May

It’s only June 3, but already automobile sales figures from Europe are starting to appear and they show that sales of Tesla vehicles in May continued their dramatic decline in all but one country. Tesla, of course, keeps its sales data secret for as long as possible and releases that information only quarterly. But registration data from the various countries in Europe provide the story that Tesla will not tell.

Reuters reports that Tesla sales in May were down 53.7 percent compared to May of last year. That’s bad, but things were even worse in Portugal, where YOY sales were down a staggering 68 percent. Putting an exclamation mark on those numbers is that in both countries, EV sales were up about 25 percent in May. Tesla isn’t treading water in Europe, it is sinking fast. Tesla sales were down 30.5 percent in Denmark, 36 percent in the Netherlands, 19 percent in Spain, and 67 percent in France.

One Bright Spot For Tesla

The news in Europe was not all bad, however. Tesla sales in Norway, the world’s leading electric car nation in terms of EV share of the market, surged 213 percent in May according to data from the Norwegian Road Federation. Last month the company sold a paltry 690 cars. In May, that number increased to 2,346. Ben Nelmes, founder of EV data firm New AutoMotive, told Reuters,  “Tesla’s strong performance in Norway points to the way forward for the company: innovate. No car company can rest on its laurels and be guaranteed success.”

One factor in all this is that Tesla has rolled out a new, less expensive version of the Model Y, but deliveries won’t begin across Europe until later this month. The Tesla faithful are holding out hope the less expensive model will spark a surge in sales, and it just might. As we all know, the three most important words in sales are price, price, and price.

So far, the data suggest the refreshed Model Y is not attracting as many new buyers as the company had hoped it would. Buyers have been able to order a refreshed Model Y across much of Europe for a while now, but the sales data from countries other than Norway show the trend is down dramatically. Tesla has been offering financial incentives for buyers in Sweden, Germany, Britain, and France in an attempt to increase sales. In Norway, it is offering interest-free loans for Model Y customers.

While CNBC reports that the refreshed version of the Model Y — code named Juniper — was the primary reason for stronger sales in Norway, those lower acquisition costs were clearly a factor as well. According to Christina Bu, secretary general of the Norwegian EV Association, the Tesla Model Y was popular nationwide. Recent campaigns aimed at lowering the borrowing and leasing costs for customers in Europe were also a factor, she said.

“The Tesla Model Y has sold well and is popular in Norway, likely because it is good value for money and because it meets Norwegians’ needs for large luggage space, high ground clearance, all wheel drive, and a tow hitch,” Bu said in an email to CNBC. Quentin Wilson, founder of EV lobby group FairCharge said Tesla’s price cuts were stimulating sales, but with only the Model Y and Model 3 selling in large volumes, “things aren’t looking great for the future of the brand.”

The Model Y was Europe’s best-selling car in 2023, but Tesla now faces more intense competition in a number of markets. In Sweden, Reuters says, sales of the Volkswagen ID.7 were almost twice those of the Model Y. The Model 3 was also outsold in Sweden by the Porsche Macan EV, the BYD Seal, and the Xpeng G6. Europe has a hodgepodge of tariffs on Chinese made electric cars, depending on how cooperative the manufacturers were with the European Commission when it conducted inquiries last year.

Sales In Australia Rebound

In the Land Down Under, May was a good month for Tesla. The Driven reports that data from the Electric Vehicle Council published on June 3 showed Tesla sales were up strongly in May, when the company delivered 3,897 vehicles, most of them refreshed Model Ys imported from China. In April, sales in Australia were a dismal 500 units, partly as a result of waiting for transport ships to arrive from Shanghai. Although the refreshed Model Y has been available in Europe and other countries for several months, deliveries in Australia only began recently.

According to the EVC, even though Tesla’s overall sales in May are up 10 percent from the same month in 2024, its year to date sales are down 48 percent to 9,557. With supplies of the refreshed Model Y growing, though, The Driven expects Tesla sales to pick up momentum over the rest of 2025.

So far this year, sales of electric cars in Australia have been hovering around the 5 percent mark — good but not great. Last year, EVs were 10 percent of new car sales in the country. Tesla once held a commanding position in the Australian market, accounting for more than 60 percent of sales, but that market share has slumped dramatically in recent months.

Thom Drew, the head of operations for Tesla in Australia, told The Driven recently the company expects “big things” from the Model Y beginning this month. “We have just had the first vessel arrive … the vehicles start delivery this week …. with over 3,500 cars on board. There’s more to come over (in June). So we’re expecting some big things this quarter.”

The Takeaway

There are Tesla lovers and Tesla haters and never the twain shall meet. Elon Musk has certainly alienated a number of potential customers around the world with his fierce embrace of totalitarian dogma, especially in Germany where he told people last year they really need to get over the Nazi thing and move on.

Also, the company is dealing with the effects of a long running strike by Sweden’s largest labor union in which the company has openly opposed the European tradition of strong labor unions. Elon Musk is a fierce opponent of unions, which is earning him few friends on the Continent. One thing that seems abundantly clear is that the company has squandered its first mover advantage, and that is squarely on Elon.