Tesla's first quarter of 2025 in Europe told two stories at once: a sharp sales decline driven by the Model Y transition and persistent brand headwinds, and a continued dominance at the top of the BEV sales charts.
The Numbers: Double-Digit Drops Across the Board
Registrations fell steeply across major European markets in the first two months of 2025. February figures paint a stark picture:
| Country | Feb 2025 | Feb 2024 | YoY Change |
|---|---|---|---|
| France | 2,395 | 3,244 | -44.4% |
| Germany | 1,277 | 3,150 | -59.5% |
| UK | 1,293 | 1,581 | -18.2% |
| Norway | 917 | 1,777 | -45.3% |
| Netherlands | 926 | 1,610 | -42.5% |
| Sweden | 613 | 1,064 | -43.9% |
| Denmark | 509 | 1,086 | -48.1% |
| Spain | 269 | 1,094 | -75.4% |
| Portugal | 380 | 551 | -31.0% |
The quarterly pattern showed a gradual easing:
| Month | YoY Decline |
|---|---|
| January | -47% |
| February | -44% |
| March | -30% |
Still on Top Despite the Slide
Here is the counterpoint: according to JATO Dynamics data, the Model Y still topped Europe's best-selling BEV list in March 2025 with 15,164 units sold. The Model 3 took second place with approximately 12,500 units — both comfortably ahead of the Volkswagen ID.4 (7,675) and ID.7 (7,438).
Global analyst Felipe Munoz noted that Tesla relied heavily on Model 3 sales to offset losses during the Model Y changeover period.
European Context
The broader European EV market told a different story. Global EV sales rose 29% in March 2025, with Europe posting a 24% increase to roughly 400,000 registrations. Germany, Italy, and the UK drove that growth — meaning Tesla's losses were Tesla-specific, not a market-wide problem.
Tesla delivered 336,681 vehicles globally in Q1 2025, down 13% year-over-year and the lowest quarterly figure since 2022. The Model Y remained the world's best-selling BEV with 201,773 units.
Update (March 2026): The sales decline continued through much of 2025. Full-year 2025 data shows Tesla delivered approximately 1.64 million vehicles globally, an 8.4% annual decline. Volkswagen overtook Tesla as Europe's top-selling EV brand for the year.