In a stark milestone for Europe’s automotive shift, battery-electric vehicles (BEVs) outsold petrol-only cars across the continent in December 2025 for the first time, with BEV registrations surging 51% year-over-year while petrol sales plunged 19.2%, according to the European Automobile Manufacturers’ Association (Electrek). Yet Tesla Inc., the pioneer of mass-market EVs, posted the steepest decline among major automakers, with EU sales dropping 37.2% for the full year. This divergence underscores deepening challenges for the U.S. electric-vehicle maker amid booming regional demand for electrification.

Overall new-car registrations in the EU rose 1.8% in 2025, with BEVs capturing 17.4% market share versus 26.6% for petrol-only vehicles. Including plug-in hybrids, electrified models claimed a third of December sales. Tesla’s tumble stood out, outpacing even struggling brands like Jaguar and Lancia sub-brands. Broader data paints an even grimmer picture: across major European markets including the UK and EFTA nations, Tesla volumes fell from 326,000 in 2024 to 235,000 in 2025, a 27.8% collapse, as detailed in registration tallies (Electrek).

December Milestone Masks Tesla’s Year-Long Slide

Norway provided a lone bright spot, where Tesla registrations soared 89% to 5,679 in December, pushing full-year sales up 41.3% to 34,285 units and securing over 19% market share in a nation where 96% of new cars were electric. This surge stemmed from buyers rushing ahead of 2026 tax changes disqualifying pricier EVs like Tesla’s from incentives. Excluding Norway, however, Tesla’s European sales cratered 36.3% through November (Reuters).

In France, Tesla deliveries slumped 66% to 1,942 in December and 37% for the year. Sweden saw a 71% December drop and 67% annual plunge, while Belgium registrations fell 53% overall. Germany, Europe’s largest market, recorded a 48.4% decline. Even the UK, Tesla’s top European outlet at 45,513 units, dipped 9.6% (Automotive World).

Chinese Rivals Surge Past Stagnant Tesla Lineup

While Tesla faltered, Chinese entrants thrived. BYD’s EU sales rocketed 228% to 129,000 through November, surpassing Tesla’s 129,024 units down 38.8%. SAIC/MG notched 191,000 registrations, up sharply. BYD overtook Tesla in Germany (23,306 units, eightfold gain) and the UK (51,422). Overall EV registrations grew 27-28% in the EU, reaching 18.8% market share through November (The Guardian).

Legacy makers also advanced: Volkswagen sold 274,417 EVs in 2025 across EU, UK and EFTA, eclipsing Tesla as Europe’s top EV brand. BMW, Skoda and Audi gained ground with fresh models like the Elroq. Tesla’s aging Model 3 and Y—despite Juniper refreshes—faced over 50 new rivals, including cheaper Chinese options and updated Europeans (InsideEVs).

Musk’s Politics Fuel Buyer Backlash

Elon Musk’s vocal support for far-right groups, including Germany’s AfD and UK figures like Tommy Robinson, alongside his Trump alliance, alienated Tesla’s progressive-leaning EV buyers. Polls showed 60% of Germans deterred by Musk’s actions. Protests hit showrooms, with vandalism reported. “Tesla’s sales slowdown started late last year, around the time when Musk… started to try to intervene in European politics,” noted The Guardian.

“Brand toxicity: Elon Musk’s continued political polarization is actively driving away the core EV-buying demographic,” analysts observed, linking 40-60% drops in France and Sweden to this sentiment (Electrek). Regulatory delays on Full Self-Driving added friction, with Musk urging customers to lobby agencies.

Aging Products Meet Fiercer Competition

Tesla’s lineup, unchanged fundamentally since 2021 for Model Y, lost edge against rapid launches from Volkswagen, BMW and Chinese firms offering lower prices. Price cuts and stripped-down Models 3/Y failed to stem losses. “Car buyers have more choice than ever, with an influx of new EVs from established manufacturers and ambitious newcomers from China,” said Electrifying.com CEO Ginny Buckley (Reuters).

November EU sales hit 12,130, down 34.2%, with market share shrinking to 1.7% from 2.4%. BYD spiked 240% to 110,715 units. Tesla’s Europe market share in BEVs fell to 9.4% in Q1 2025 from 18.2% in 2023 (EVXL).

Broader Market Shifts Reshape Priorities

EU incentives waned in Sweden and Belgium, amplifying declines of 66.9% and 53.1%. Italy bucked trends with 85% December growth via rebates, but annual sales still fell 18%. Portugal (-22%), Spain (-4%) and Denmark (-41%) reflected patchy support. Total EU BEVs hit 2.3 million through 11 months, up from prior years despite Tesla’s drag (Automotive News).

Tesla’s woes extended globally, with 2025 deliveries down 8.6-9% to 1.64 million, ceding the EV crown to BYD’s 2.25 million BEVs. Investors eye autonomy and robotics, buoying shares despite auto weakness. Europe, once a growth engine, now tests Tesla’s pivot from vehicles alone.