Tesla's Sales Fall 90 Percent In EV-Dominant Region

Tesla has recently been on a backfoot in terms of sales in the European market. The effects of it have now started to show on some of the most loyal markets of the automaker. This is in contrast to what the brand has witnessed until now on the continent, despite rising competition. Specifically, Norway, a market that was considered one of the strongholds of the brand, seems to be getting out of the American manufacturer's grip.

New registration data from January 2026 reveals that the Tesla Model Y registered sales of 62 units, which translates to 2.8 percent of the total new car sales. Across the lineup, the brand sold 83 units, which is a decline of 88 percent compared to the same period last year. Meanwhile, rivals are now gaining ground, with Volkswagen ID.3 leading the chart with sales of 299 units, almost 5 times more than Tesla.

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Even with Tesla facing challenges, the EV market in Norway remains a good place for electric vehicles. An astonishing 94 percent of all new vehicle sales in Norway last month consisted of EVs. There were merely 98 sales of diesel vehicles, and only 7 petrol cars were registered nationwide, marking the lowest figure ever recorded.

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Although it faced a tough month in Norway, Tesla did see an increase in sales in select European markets. For instance, sales in Spain surged by 70 percent to reach 456 units. Furthermore, sales in Italy rose by 75 percent to 713 units, increased by 26 percent in Sweden to 512 units, and went up by 3 percent in Denmark to 458 units.

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This surge is likely linked to the newly launched, budget-friendly, and simplified versions of the Model 3 and Model Y. These Standard models were introduced to revitalize Tesla's aging product line, which has been facing growing criticism for falling behind newer, more innovative rivals.

Meanwhile, the Tesla Model Y in the Indian market is offering various schemes to increase sales. Specifically, the brand is offering an exchange bonus of up to Rs 3 lakh in exchange for an ICE vehicle.