Tesla registrations plunge 17% in Europe as BEV market jumps 14%

Tesla’s slump cannot be chalked up to a one‑off production hiccup. ACE A data show the automaker delivered just 8,075 battery‑electric vehicles (BEVs) across the EU, EFTA and the UK in January 2026, a 17 % year‑on‑year decline (Electrek). The dip is stark because January 2025 was already a weak month while Tesla transitioned to the refreshed Model Y “Juniper.” A full year later the new model is in steady production, yet registrations fell further, indicating a structural loss of market share rather than a temporary trough.

The broader European EV market is expanding in spite of Tesla’s retreat. ACE A reports 189,062 BEVs were registered in the region in January 2026, up 13.9 % from a year earlier, lifting the EU’s BEV share to 19.3 % from 14.9 % (Electrek). Stripping Tesla out of the equation raises the growth rate to 15.9 % – 180,987 units versus 156,197 a year ago – underscoring how Tesla is now dragging down the sector’s momentum.

Chinese challenger BYD is the primary beneficiary of Tesla’s erosion. The firm logged 18,242 registrations in January 2026, a 165 % surge year‑on‑year, more than doubling Tesla’s volume and pushing BYD’s EU+EFTA+UK market share to 1.9 % versus Tesla’s 0.8 % (Electrek). The shift is most pronounced in Norway, where the end of EV tax exemptions caused total new‑car registrations to plunge 76.3 %; Tesla’s historically dominant position there collapsed, contributing heavily to the 17 % regional decline (Electrek).

Fuel‑combustion sales are falling faster than EVs are rising, reshaping the competitive landscape. ACE A figures show petrol registrations fell 28.2 % YoY and diesel slipped 22.3 % across the EU, driving the combined internal‑combustion share down to 30.1 % from 39.5 % a year earlier (Electrek). Plug‑in hybrids, however, surged 32.2 % to 99,654 units, with Italy (+134.2 %) and Spain (+66.7 %) leading the charge, keeping hybrid‑electric powertrains at a 38.6 % market share (Electrek).

Traditional OEMs are holding steady or modestly expanding while Tesla contracts. Stellantis grew 6.7 % to 164,436 units, with Fiat up 24.6 % and Opel/Vauxhall up 12.7 % (Electrek). Volkswagen Group, despite a 3.8 % dip, still commands a 26.7 % share, and Mercedes‑Benz edged up 2.8 % while BMW fell 5.7 % (Electrek). The data suggest that legacy manufacturers are capitalising on the electrification wave that Tesla appears to be losing ground in, raising questions about the sustainability of its European strategy as the continent accelerates toward an all‑electric fleet.