Tesla’s grip on Europe’s electric vehicle market appears to be slipping faster than anticipated, with January 2026 registrations plummeting in key countries like France and Norway. Investigators are piecing together a troubling picture: sales in France nosedived 42% to a mere 661 units, the lowest in over three years, while Norway saw an 88% collapse to just 83 vehicles. What triggered this freefall? A closer look reveals policy maneuvers and market forces at play, raising questions about whether Tesla can rebound from this double whammy.
Dig deeper into Norway, and the story sharpens into focus. The government’s recent tax overhaul slashed VAT exemptions for EVs priced above 300,000 Norwegian kroner, imposing a steep 25% levy on the excess. This sparked a mad December rush—sales spiked 89% year-over-year—only for demand to evaporate post-holiday. Industry-wide EV registrations tanked 76% in January, but Tesla bore the brunt. Even with 2025’s 41% annual gain to a record 34,285 units in Norway, this policy pivot exposes vulnerabilities in Tesla’s high-price strategy. Is this a temporary blip, or a sign of structural weakness?
Bright spots flicker elsewhere, yet they barely pierce the gloom. Sweden logged a 26% uptick to 512 registrations, Denmark a modest 3% rise to 458, bolstered by approvals for Tesla’s Full Self-Driving tests on Swedish roads. Still, these gains mask the bigger hemorrhage: Tesla’s 2025 European total plunged 27% to 238,656 units amid a 30% surge in overall BEV sales. Chinese rivals like BYD are storming the gates with 267% growth, their aggressive pricing undercutting Tesla’s premium positioning. How long can isolated wins sustain the brand against such tidal shifts?
The plot thickens with whispers of brand fatigue. Elon Musk’s vocal support for far-right figures across Europe has stirred backlash, with a Norwegian EV survey revealing 43% of drivers shunning Tesla for political reasons. Coupled with an aging lineup and relentless competition, Tesla faces an existential probe: Can it innovate fast enough to reclaim lost ground, or will controversy and complacency seal its continental decline? The numbers don’t lie, but the full story demands relentless scrutiny.
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