Tesla’s Europe problem keeps getting worse. Here's why
- by CNBC
- Feb 24, 2026
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Key Points
Tesla's new car registrations in Europe fell 17% year-on-year in January, marking the 13th consecutive month in which sales have shrunk across the continent.
In sharp contrast, Chinese EV giant BYD has more than doubled its market share across the European Union, Britain, Switzerland, Norway and Iceland.
An analyst told CNBC it showed a "very weak" start to 2026 for Tesla in Europe, where consumers have "much more choice."
In this article U.S. electric vehicle maker Tesla
's sales in Europe were down for a 13th consecutive month in January, while its biggest Chinese rival saw another surge.
Data published Tuesday by industry lobby group ACEA, or the European Automobile Manufacturers Association, found that Tesla's new car registrations fell to 8,075 in January, down 17% from a year ago, representing the 13th consecutive month in which sales have shrunk.
Tesla's market share across the European Union, Britain, Switzerland, Norway and Iceland fell to 0.8%, meanwhile, down from 1% in the same month last year.
It marks another "very weak" start of the new year for Elon Musk's company, Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, told CNBC by email.
"Tesla's image has deteriorated in Europe last year and people have much more choice now with the range of new affordable EVs (including those of BYD and others like MG and ZEEKR) entering the market, while Tesla lacks new models," he added.
Tesla's focus on autonomous driving, rather than introducing new vehicles and expanding its range of mass models, is likely a factor too, Luman said.
"Another thing in Europe is that large numbers of first generations of Tesla's are remarketed at the moment (after being leased for 4-6 years), this has driven second hand prices down," Luman said, adding that there's an abundance of competitively priced Tesla's available on the used market.
A Tesla car is being charged at a Tesla electrical vehicle charging station in Norheimsund, Norway, Aug. 22, 2025.
Sergei Gapon | Afp | Getty Images
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