The narrative for Tesla in Europe is shifting noticeably. While the American automaker once held a dominant stronghold in key markets, it has recently been on the backfoot in terms of sales across the European continent. The effects of this slowdown have now started to show even in its most loyal territories, which is a stark contrast to what the brand had witnessed until now.
Specifically, Norway—a market long considered one of Tesla’s primary strongholds and a predominantly electric vehicle arena—seems to be getting out of the manufacturer’s grip, a clear signal of the rising competition.
Tesla’s European Sales: A Mixed Picture in January 2026
A Sharp Decline in the Norwegian Stronghold
The latest New registration data from January 2026 paints a stark picture for Tesla in Norway. The figures reveal that the Model Y registered sales of just 62 units, which translates to a mere 2.8 percent of the total new car sales for the month. Across the entire brand lineup, Tesla sold only 83 units, representing a staggering decline of 88 percent when compared to the same period last year. Meanwhile, its rivals are decisively gaining ground; the Volkswagen ID.3 is leading the chart with sales of 299 units, which is almost 5 times more than Tesla’s total.
Norway’s EV Market Thrives Despite Tesla’s Slump
It’s important to note that Even while Tesla is facing these challenges, the broader EV market in Norway remains a phenomenal place for electric vehicles. In an astonishing statistic, 94 percent of all new vehicle sales in Norway last month consisted of EVs. For context, there were merely 98 sales of diesel vehicles and only 7 petrol cars registered nationwide, marking the lowest figure ever recorded and highlighting the market’s complete shift away from fossil fuels.
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Growth in Select European Markets Offers a Contrast
Although it faced a tough month in Norway, there is a contrasting story from other European regions where Tesla did see an increase in sales. For example, sales in Spain went up by 70 percent, reaching 456 units. In Italy, sales increased by 75 percent to 713 units. Sweden saw a 26 percent rise, bringing sales to 512 units. Meanwhile, Denmark experienced a 3 percent increase, totaling 458 units, showing the brand’s performance is highly variable by market.
Strategy Shift: New Models and Market-Specific Offers
The sales surge in some European markets is likely linked to Tesla’s strategic move of launching newly, budget-friendly, and simplified versions of its core models. These Model 3 and Model Y Standard trims were introduced to directly revitalize what was seen as an aging product line. For some time, the brand had been facing growing criticism for falling behind newer, more innovative rivals, and these accessible variants appear to be a direct response to that pressure.
Meanwhile, in another strategic push, Tesla is employing aggressive tactics in the Indian market. Here, the Model Y is offering various schemes to increase its sales. Specifically, the brand is offering a compelling exchange bonus of up to Rs 3 lakh for customers willing to exchange their old ICE vehicle. This initiative aims to lower the entry barrier and directly convert users from conventional fuel cars to electric.
