Despite facing a challenging market in several European countries, Tesla has managed to achieve record-breaking sales in Norway, solidifying its dominance in one of the world’s most EV-friendly countries. In December 2025, Tesla experienced a sharp decline in registrations in markets such as Sweden and France, with sales dropping significantly year-over-year. This decline can be attributed to increased competition from legacy automakers and Chinese EV brands, an aging product lineup, and controversies surrounding CEO Elon Musk’s public statements.
Even the introduction of more affordable versions of the Model 3 and Model Y in Europe did not reverse the downward trend in sales for Tesla. The company’s performance in Europe was further dampened by weaker global fourth-quarter deliveries, which fell below expectations at 418,227 vehicles.
However, amidst this challenging environment, Norway emerged as a shining beacon for Tesla. The country witnessed an 89% year-over-year surge in Tesla registrations in December, totaling 5,679 vehicles and setting a new annual sales record. With electric vehicles accounting for nearly all new car sales in Norway, Tesla captured over 19% of the market share in 2025. The Model Y alone outsold every other car brand in Norway during the year, showcasing Tesla’s strong position in the market.
Notably, Tesla’s success in Norway is not a recent phenomenon. The company had previously broken Norway’s all-time annual vehicle sales record and the Model Y had surpassed the Nissan Leaf as the best-selling EV in the country. Norway’s fully electrified market, supported by robust incentives and infrastructure, has provided a fertile ground for Tesla to thrive.
While only eight European countries have reported full-year sales data so far, these markets represent roughly half of Tesla’s European business. It is expected that the remaining countries will follow a similar trend once their numbers are released. The question now remains whether Tesla can replicate its success in Norway across the rest of Europe in 2026.
Despite facing challenges in some European markets, Tesla’s strong performance in Norway serves as a testament to the brand’s appeal and the importance of a supportive EV ecosystem. As the company navigates the evolving landscape of the European EV market, the contrast between its struggles in some countries and its triumphs in others couldn’t be more pronounced.
According to new figures reported by CNN, Chinese electric vehicle maker BYD delivered 2.26 million electric vehicles last year, a significant increase of nearly 28% year-over-year. In comparison, American automaker Tesla posted 1.64 million deliveries during the same period.
This data highlights the growing competition in the electric vehicle market, with both BYD and Tesla vying for market share and dominance. BYD’s strong performance in 2021 can be attributed to its diverse portfolio of electric vehicles, ranging from passenger cars to buses and trucks. The company has been investing heavily in research and development to expand its product offerings and improve its technology.
On the other hand, Tesla’s lower delivery numbers may be attributed to supply chain challenges and production constraints that have impacted the automotive industry as a whole. Despite these challenges, Tesla remains a key player in the electric vehicle market, known for its innovative technology and popular models such as the Model 3 and Model Y.
Both BYD and Tesla are expected to continue their growth trajectory in the coming years as demand for electric vehicles increases worldwide. With governments around the world implementing stricter emissions regulations and consumers becoming more environmentally conscious, the electric vehicle market is poised for continued growth and innovation.
In conclusion, the competition between BYD and Tesla in the electric vehicle market is heating up, with both companies delivering impressive numbers in 2021. As the industry continues to evolve, it will be interesting to see how these two giants fare in the race for electric vehicle supremacy.