Tesla Model Y Drives Sales Surge in Norway and Spain Amid European Challenges

In June 2025, Tesla’s revamped Model Y sparked a significant sales boost in Norway and Spain, signaling strong demand for the updated electric SUV despite broader market struggles. According to Reuters, Tesla’s registrations in these Countries surged, driven by the Model Y’s appeal, even as the company faces competition and backlash over CEO Elon Musk’s political activities.

Model Y Performance and Sales Growth

Tesla’s Model Y, refreshed with updated styling and features, led a 54% year-on-year increase in car registrations in Norway, with Model Y units soaring 115.3% to 5,004 vehicles. In Spain, Tesla sales climbed 60.7% to 2,632 units, with Model Y registrations jumping 127.2% to 1,179 units.

“This is a demonstration of power by Tesla. After so much turmoil surrounding owner and frontman Elon Musk, they manage to achieve this result. It’s impressive,” said Erik Lorentzen, head of the Norwegian Electric Vehicle Association.

These gains highlight the Model Y’s role as a cornerstone of Tesla’s lineup, offering a range of approximately 300 miles (483 kilometers) and all-wheel-drive options that resonate with buyers in EV-friendly markets.

Tesla Model Y Drives Sales Surge In Norway And Spain Amid European Challenges 2

Challenges in Other European Markets

Despite successes in Norway and Spain, Tesla faced steep declines elsewhere. Sales dropped 64.4% in Sweden, 61.6% in Denmark, 10% in France, and 66% in Italy, marking a sixth consecutive month of losses in these regions. In Denmark, Model Y sales fell 31.2% to 1,155 units, underscoring uneven demand.

Matthias Schmidt of Schmidt Automotive noted, “A new model update is the classic extension strategy for a product that is used to inflate a product’s lifecycle, giving a short-term bounce.”

Tesla’s aging lineup, unchanged since 2020, struggles against affordable EVs from European automakers and Chinese competitors like BYD, which are rapidly gaining market share.

Industry Trends and Competitive Pressures

Tesla’s European challenges reflect broader industry shifts. Chinese EV makers are capturing share with lower-priced models, while traditional automakers roll out budget-friendly electric options.

Norway, where 92.7% of new car sales are fully electric, remains a bright spot due to strong EV incentives and Tesla’s zero-interest financing offers.

However, “Significant percentage changes often hide small numbers, and some European markets only have hundreds or low thousands of sales each month, which can be impacted by logistics, stock levels, and new product launches,” said Andy Leyland, co-founder of SC Insights reportedly.

Tesla’s stock fell 5.3% amid these mixed results, compounded by Musk’s political controversies, which have spurred protests and vandalism at Tesla facilities.

Implications for EV Owners and Industry

For EV owners, the Model Y’s success in Norway and Spain underscores its reliability and appeal, particularly in markets prioritizing sustainability. However, Tesla’s broader struggles highlight the need for innovation to counter rising competition.

Regulatory pressures, including EU tariffs on Chinese EVs, and economic factors, like fluctuating demand, will shape Tesla’s path. The company’s ability to scale production of the revamped Model Y, priced around $47,000 (approximately €44,000), and introduce new models will be critical to regaining momentum in Europe‘s dynamic EV landscape.