Tesla saw a drop in sales across Europe in February 2025, but the company says the slowdown is part of a planned transition—and not a sign of long-term trouble.
According to data from JATO Dynamics, registrations of battery electric vehicles (BEVs) in Europe rose 26% year-over-year, hitting a record 164,000 units for the month. But while the EV market grew, Tesla’s numbers temporarily dipped. The company registered just over 15,700 units, down 44% from last year, and its share of the BEV market fell to 9.6%—its lowest for a February in five years.
Industry analyst Felipe Munoz pointed out that Tesla is in the middle of phasing out the current Model Y, its best-selling vehicle, to make way for a refreshed version. “Brands often see a drop in sales during model transitions,” Munoz explained, “especially when they have a more focused lineup like Tesla.”
The Model Y saw registrations fall by 56% to 8,800 units, while the Model 3 dipped by 14% to 6,800 units. But Tesla’s recent launch of the updated Model Y is expected to reverse that trend once the vehicle becomes readily available across European markets.
Tesla was in the second spot with 15,737 registrations in February in Europe, with Volkswagen ahead at 19,565, which saw a 180% rise year-over-year.
Meanwhile, several Chinese-owned brands, including BYD, Polestar, and Xpeng, saw gains in Europe’s growing EV sector, collectively outselling Tesla in February. But those gains may be short-lived once Tesla’s refreshed lineup returns to full production.
Tesla’s temporary dip is not unique in the industry. Even long-established automakers like Volvo saw a drop, while others such as Volkswagen, Renault, and Mini posted significant BEV sales increases thanks to new model launches.
Despite the short-term decline, Tesla remains a major player in Europe’s EV market. The brand continues to lead in innovation and remains focused on delivering software-first driving experiences and streamlined production, which have helped it maintain a cost advantage over many rivals.
As the new Model Y begins hitting roads in the coming months, all eyes will be on Tesla to see how quickly it regains momentum. If past performance is any indicator, a rebound may not be far off.
