New data from the European Automobile Manufacturers Association (ACEA) confirms that Tesla registered just 8,075 vehicles in the EU, EFTA and the UK in January 2026, down 17% from the same month last year.
The decline is especially damaging because January 2025 was already a weak month for Tesla, during the production transition of the refreshed Model Y. Meanwhile, the broader battery-electric vehicle market grew 13.9%, making it harder to explain Tesla’s decline as a matter of timing.
BEV market growing despite Tesla dragging it down
In the EU, EFTA and the UK, 189,062 battery-electric cars were registered in January 2026, up from 165,930 a year earlier – an increase of 13.9%. According to ACEA data, BEV market share in the EU is set to rise from 14.9% to 19.3% in January 2025.
France (+52.1%), Germany (+23.8%), and Denmark (+52.7%) achieved most of the growth, while the total car market declined by 3.5%.
The growth looks even stronger when you exclude Tesla’s numbers. Without Tesla, BEV registrations in the EU, EFTA and UK rose 15.9% year-on-year – to 180,987 units in January 2026, compared to 156,197 a year earlier.
Tesla is not failing to contribute to the EV transition in Europe; This is actively pulling down the growth rate.
By contrast, BYD registered 18,242 vehicles in January 2026, up 165% year-on-year and more than double Tesla’s volume in the region. The Chinese automaker now has a 1.9% market share in the EU+EFTA+UK, while Tesla has 0.8%.
Tesla’s problems run deeper than the Model Y refresh
In the first quarter of 2025, Tesla’s European sales declined nearly 37% year-on-year, and the company and its supporters attributed the production shift to the refreshed Model Y “Juniper.” January 2025 was considered to be the trough, a temporary decline due to the transition between the old and new models.
That excuse is no longer valid. January 2026 represents a full year after the Model Y refresh launches. The new model is in full production, widely available across Europe, and has been on the market for months. Tesla registrations are still down 17% compared to what were already considered terrible numbers.
Specifically in the EU, Tesla registered 7,187 vehicles in January 2026, up from 7,305 a year earlier, a slight decline of 1.6%. The steep 17% decline in the EU+EFTA+UK figure is driven by the EFTA markets, particularly Norway, where total new car registrations fell by 76.3% due to the end of tax breaks. Tesla, which historically dominated Norway’s EV market, is feeling the impact disproportionately.
The rest of the market tells a different story
While Tesla contracts, the broader European car market is rapidly moving toward electrification. Petrol car registrations in the EU fell 28.2% year-on-year, with France down 48.9% and Germany 29.9%. Diesel continued to decline by -22.3%. The combined share of petrol and diesel in the EU fell to 30.1% from 39.5% in January 2025.
Plug-in hybrids in EU+EFTA+UK also increased by 32.2% to 99,654 units. Italy (+134.2%) and Spain (+66.7%) led the way. Hybrid-electric vehicles remain the most popular powertrain choice, with a 38.6% EU market share.
Among manufacturers, Stellantis rose 6.7% to 164,436 units in EU+EFTA+UK, with Fiat up 24.6% and Opel/Vauxhall up 12.7%. Volkswagen Group declined 3.8% but still captured 26.7% market share. Mercedes-Benz rose 2.8%, while BMW Group fell 5.7%.
Electrek’s Tech
We thought Tesla’s January 2025 numbers in Europe were bad. At the time, the company was in the midst of a Model Y production transition, and we gave it the benefit of the doubt that the numbers would straighten out once the refreshed model hit the market in volume. A year later, with the new Model Y becoming widely available, Tesla’s European registrations have declined another 17%. The problem apparently isn’t the Model Y refresh.
The European EV transition is accelerating, but not for Tesla. BYD registered more than twice as many vehicles as Tesla in January, and the gap is growing every month.
The boycott movement gaining momentum across Europe in 2025 has pushed Tesla out of a significant portion of the market, and subsidies are now ending in some markets.In view of the decline in demand for Tesla.
Tesla needs to find its footing in Europe soon, otherwise it risks becoming irrelevant in one of the world’s largest EV markets, while competitors like BYD, Volkswagen and Stellantis will fill the void.
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