On February 2, reports emerged indicating that Tesla's sales downturn in Europe carried over into 2026, as evidenced by a substantial drop in new - car registrations in two of its key electric vehicle markets.

According to data from the French Automobile Manufacturers Association (PFA), Tesla's sales in France took a nosedive, plunging by 42% year - on - year in January. Only 661 units were sold, hitting the lowest point in over three years. In Norway, the situation was even more dire, with Tesla's registrations in January plummeting by a staggering 88%.

In 2025, Tesla faced sluggish overall demand across Europe. This was partly attributed to the backlash from consumers against Musk's support for the Trump administration and right - wing political figures in several countries. In the previous year, Norway stood out as Tesla's sole major European market to witness growth, with annual registrations surging by 41%. This was because some consumers hastened to make purchases before policy changes. However, in January of this year, the Norwegian government tightened the VAT exemption rules for electric vehicles. As a result, sales across the entire industry took a 76% hit, and Tesla was not spared from the impact.