Tesla’s electric vehicle sales plunged across most major markets in early 2025, but Norway bucked the trend with a stunning 213% jump in May sales. The American automaker sold 2,600 units in Norway that month, while other European countries saw massive declines.
Norway’s success comes from strong government policies supporting electric vehicles. The country reached a 93% EV penetration rate, nearly banning gas-powered cars through incentives rather than outright restrictions. Tesla’s Model Y dominated Nordic sales, matching its position as the world’s bestselling vehicle in 2023. June 2025 continued this momentum with Norwegian sales rising 54% year-over-year, reinforcing the market’s resilience.
Norway achieved 93% EV penetration through incentives, making Tesla’s Model Y the dominant Nordic seller.
The rest of Europe told a different story. UK sales dropped 45% compared to last year’s May figures. Germany’s first quarter sales fell 57.7%, with May declining 36.2%. France saw sales crash 67%, while Spain’s numbers dropped 29%. January 2025 registrations across Europe hit just 9,945 units, down 45% from the previous year. Other Nordic countries experienced significant declines with Sweden down 53.7%, Denmark falling 30.5%, and Portugal plummeting 68%.
China, Tesla’s second-largest market after the US, showed mixed results. While the company sold 603,304 units there in 2023, 2025 sales declined despite strong infrastructure. Local competitors and changing subsidies affected demand, though the Model Y maintained its leadership position.
In the United States, first quarter deliveries fell 8.6% to 128,100 units. Missing May data created uncertainty about midyear trends. The company delivered 654,888 vehicles in the US during 2024, but new tax credit restrictions limited eligibility for many buyers. Traditional automakers like Volkswagen and Toyota increased pressure with their expanding EV lineups.
Global deliveries reflected these regional struggles. First quarter 2025 sales dropped 13% to 336,681 units, while second quarter numbers fell 14% to 384,122 units. Tesla delivered 1.79 million vehicles in 2024, slightly below 2023’s 1.81 million.
Norway’s exceptional performance can’t offset global challenges. Europe’s fragmented regulations complicate operations at Tesla’s Berlin factory. China’s subsidy changes force new pricing strategies. US tax credit restrictions narrow the buyer pool. Competition intensifies as traditional automakers expand electric selections.
Tesla’s profitability faces pressure as margins tighten during this global downturn. Price cuts haven’t sparked demand in recessionary markets like Europe, where recovery seems unlikely without major policy changes.