Tesla's sales slump in the European market has persisted into 2026, as evidenced by a significant decrease in new vehicle registrations in two key electric vehicle (EV) markets. Data from the French Automobile Manufacturers' Association (PFA) reveals that Tesla's sales in France took a nosedive, plummeting by 42% year-on-year in January. With a mere 661 vehicles sold, this figure represents the lowest sales level in over three years. Norway, which had previously been a rare beacon of hope for Tesla in Europe, witnessed an astonishing 88% drop in vehicle registrations in January of this year. In the previous year, Norway stood out as the only major European market where Tesla experienced growth, with annual registrations surging by 41%. This growth was partly fueled by consumers rushing to make purchases before policy changes. However, this year in January, the Norwegian government implemented stricter VAT exemption rules for electric vehicles. This policy shift resulted in a 76% plunge in industry-wide sales, and Tesla was not immune to this downturn.