Model Y: European leader despite -28% sales

The Model Y remains champion in 2025, but the figures tell a more nuanced story. With 149,805 registrations in Europe, Tesla’s electric SUV retains its crown as the continent’s best-selling electric vehicle. However, behind this apparent success lies a significant 28% decline compared to 2024. This paradoxical performance raises questions about Tesla’s future in Europe, facing increasingly aggressive competition and a particularly challenging environment. Let’s analyze together the reasons for this contrasting dynamic and the outlook for the coming months.

The Model Y remains Europe’s best-selling electric vehicle

Official figures from JATO Dynamics confirm the absolute dominance of the Model Y in the European electric vehicle market. With 149,805 registrations, the American electric SUV has a massive lead of over 50,000 units over its immediate competitor, the Skoda Elroq, which recorded 93,870 units.

This comfortable lead illustrates an undeniable reality: no competitor currently manages to approach this sales volume for a single model. Even within the Tesla range, the gap is significant, as the Tesla Model 3 stands at 85,393 units.

As a Model Y owner, I observe on the road that it remains the benchmark electric SUV. Its presence is massive on European streets, and that’s no coincidence. The space/driving range/performance/price ratio remains hard to beat, even against newer competitors. We can also observe certain European markets where the Model Y continues to break records, proving that its attractiveness remains intact in several countries.

A 28% drop explained by several factors

The transition to the restyled Model Y “Juniper”

The primary explanatory factor for this 28% decline is purely industrial. Tesla halted production of the “classic” Model Y in the first quarter of 2025 to make the product transition to the Model Y Juniper, the restyled version of the SUV.

This phenomenon, known as the Osborne effect, is classic in the automotive industry: potential customers prefer to wait for the new model rather than buying the older version at the end of its cycle. This strategic waiting mechanically impacts registrations, without reflecting a real loss of interest in the vehicle. This is also the decline in Model Y sales that we had already observed in the months preceding the official announcement of the Juniper.

An unfavorable European climate for Tesla

Beyond industrial aspects, the general climate in Europe was not favorable to Tesla in 2025. The brand image suffered from a particularly critical media context, especially regarding Elon Musk, whose stances caused a stir on the Old Continent.

At the same time, increased competition from local European manufacturers intensified, benefiting from strengthened institutional support and a natural proximity to consumers. The general economic context of the electric market, marked by the end of certain tax incentives in several countries, also weighed on the entire sector.

Volkswagen dethrones Tesla as Europe’s leading electric brand

This is the other major revelation from these 2025 statistics: Volkswagen snatched the title of leading electric brand in Europe from Tesla. The German group recorded 274,278 vehicles sold, a spectacular increase of 56% compared to 2024, while Tesla registered 236,357 vehicles, a decrease of 27%.

This victory for Volkswagen is based on a particularly effective multi-model strategy. The group offers numerous options across its different brands: ID.4, ID.3, ID.7 from Volkswagen, Cupra Born for the sporty side, Skoda Enyaq and Elroq for value for money. This diversification contrasts sharply with Tesla’s approach, which is essentially concentrated on two main models in Europe.

As an observer of the Tesla market, I find this multi-model strategy fascinating. It allows capturing different customer segments, multiplying contact points in dealerships, and diluting risks. However, let’s qualify this observation: Volkswagen wins the brand volume battle, but none of its individual models approach the performance of the Model Y. Two philosophies clash here, with their respective advantages and limitations.

The European electric vehicle podium in 2025

The ranking of the best-selling electric vehicles in Europe reveals Tesla’s dominance on the podium, but with important nuances:

1. Tesla Model Y: 149,805 units
2. Skoda Elroq: 93,870 units
3. Tesla Model 3: 85,393 units

The real surprise in this ranking is the second place of the Skoda Elroq. This newcomer shows rapid progress that deserves attention. With its attractive price positioning, good driving range, and practicality, the Czech SUV has managed to attract European customers looking for affordable electric solutions without excessive compromise.

The Tesla Model 3 completes the podium but also recorded a 24% decline compared to 2024. One might wonder about a form of internal cannibalization: with a reduced price difference between the two Tesla models, many buyers naturally prioritize the space and versatility of the Model Y.

Also noteworthy is the rise of French challengers like the Renault 5, which is starting to gain significant market share, as well as the essential VW ID.4 and ID.3 which maintain comfortable volumes.

Tesla’s challenges in the European market

A range considered aging by analysts

JATO Dynamics emphasizes in its analysis the need for Tesla to renew its range more frequently. The Model Y was launched in 2020, five years ago, an eternity in a rapidly evolving sector. The Tesla Model 3, even restyled in 2023, is based on a platform designed in 2017.

Compared to competitors offering models integrating the latest technologies (screens, batteries, driving assistance systems), this relative age becomes a commercial handicap. The Model Y Juniper arrives precisely to address this criticism, with significant improvements in terms of design, soundproofing, and interior equipment.

Increased competition from all sides

The European market has become a particularly contested battlefield. Tesla faces double competitive pressure:

• Traditional European manufacturers (Volkswagen, Renault, Stellantis, Mercedes, BMW) who have massively invested in electric vehicles and benefit from their historical network
• Chinese competition (BYD, MG, Polestar) which is gaining momentum with technologically advanced vehicles and aggressive prices

This double pincer movement exerts considerable pressure on prices and margins. Tesla has also had to adapt its pricing strategy, as evidenced by the aggressive discount strategies observed in Germany, Europe’s largest automotive market.

European manufacturers also benefit from significant local advantages: a dense distribution network, a reassuring local image, and sometimes national subsidies favoring local production.

As an observer of the Tesla market, I remain convinced that this competitive normalization is healthy for the entire electric ecosystem. The market has structured itself, Tesla is no longer alone, and this is ultimately excellent news for consumers who now have a wider choice and more competitive prices.

The Model Y thus retains its European crown in 2025, but the warning signs are clearly present. The 28% decline cannot be ignored, even if it is partly explained by cyclical factors. The arrival of the Model Y Juniper should revive commercial momentum in 2026, provided Tesla successfully communicates effectively on the improvements made.

The major strategic challenge, however, remains the expansion of the range. The long-awaited Model 2 could allow Tesla to attack the accessible electric vehicle segment, currently dominated by European and Chinese manufacturers. According to industry analysts, this diversification will be crucial to maintaining its leadership position in the long term. As a member of the Tesliens community, I remain confident: the brand has repeatedly proven its ability to bounce back and surprise the market.