New data from the European Automobile Manufacturers’ Association (ACEA) reveals that Tesla’s vehicle registrations in the EU, EFTA, and the UK plummeted to 8,075 in January 2026, marking a significant 17% decline from the same month last year. This drop is troubling, particularly as January 2025 had already seen weak sales figures for Tesla, which were attributed to the transition to the updated Model Y. In stark contrast, the overall market for battery-electric vehicles (BEVs) surged by 13.9%, highlighting Tesla’s struggles amidst broader industry growth.
Total BEV registrations across the EU, EFTA, and UK amounted to 189,062 in January 2026, up from 165,930 a year prior. Consequently, the market share of BEVs in the EU increased to 19.3%, nearly five percentage points higher than the 14.9% observed in January 2025. Key markets, including France, Germany, and Denmark, fueled this expansion, with France showcasing a remarkable increase of 52.1%, and Denmark experiencing a growth rate of 52.7%. Meanwhile, the overall car market faced a contraction of 3.5%.
Interestingly, when excluding Tesla’s figures, BEV registrations soared by 15.9% year-over-year, totaling 180,987 units in January 2026 compared to 156,197 the previous year. This underlines the fact that Tesla’s performance is not only lagging but also negatively impacting the growth rate of the sector overall.
In contrast, BYD experienced a substantial boost in its registrations, reporting 18,242 vehicles for January 2026—a remarkable 165% increase year-over-year—more than doubling Tesla’s performance in the region. This growth allowed the Chinese automaker to capture a 1.9% market share in the EU, EFTA, and UK, compared to Tesla’s diminished 0.8%.
Tesla’s woes extend beyond the transition to the Model Y. Last year, its sales in Europe dropped by about 37% in Q1 2025, a decline attributed to the production switch. However, one year post-launch of the refreshed Model Y, Tesla’s numbers continue to falter in this competitive landscape. Specifically, the company registered 7,187 vehicles in the EU in January 2026 compared to 7,305 a year ago, showing a mere 1.6% decrease. However, the more significant decline in the combined EU, EFTA, and UK figures is driven by EFTA markets like Norway, which saw a staggering 76.3% drop in total new car registrations due to the elimination of tax exemptions.
While Tesla grapples with its declining sales, the broader European automotive market is embracing electrification at a rapid pace. Petrol car registrations fell by 28.2% year-over-year across the EU, with France experiencing a dramatic 48.9% decline and Germany seeing a 29.9% drop. Diesel vehicles continued their downward trajectory, decreasing by 22.3%. The combined share of petrol and diesel cars has dropped to 30.1% in the EU, down from 39.5% in January 2025.
Plug-in hybrids also displayed impressive growth, surging by 32.2% to 99,654 units in the EU, EFTA, and UK, led by Italy and Spain. Among vehicle manufacturers, Stellantis reported a 6.7% growth across the same regions, with notable gains from Fiat and Opel/Vauxhall. Volkswagen Group, although showing a slight decline, still maintained a dominant market share of 26.7%, while Mercedes-Benz and BMW had minimal changes in their registrations.
Tesla’s struggles appear exacerbated by a boycott movement that gained traction in 2025 and the phasing out of subsidies in several markets, limiting the company’s market presence and demand. As competitors like BYD, Volkswagen, and Stellantis continue to expand their foothold in Europe, Tesla must navigate these challenges effectively to maintain its relevance in one of the world’s largest EV markets. The current landscape suggests that a rapid recovery will be essential for Tesla to regain its competitive edge in an increasingly crowded field.