Tesla is facing significant challenges in the European market, including a notable sales decline in Denmark. The American electric car manufacturer’s Danish subsidiary, Tesla Motors Denmark ApS, reported a substantial drop in turnover last year.

The company’s annual report for 2024 reveals a turnover of 5.3 billion kroner, a decrease of 2.8 billion kroner compared to the previous year’s 8.1 billion kroner. Tesla anticipates this downward trend will continue, projecting a further reduction of 10 to 15 percent in car deliveries to Denmark in 2025.

Data from Mobility Denmark, based on figures from Bilstatistik.dk, confirms a decline in new Tesla car sales in Denmark. In the first quarter of 2025, registrations of new Tesla cars more than halved compared to the same period in 2024, with 1549 new registrations this year versus 3556 last year.

While Tesla’s Model Y managed to re-enter the top ten list of favorite passenger cars in Denmark in May with 674 registrations out of nearly 18,000 new passenger cars, the company still has ground to recover to reach its previous market dominance. In 2024, Tesla’s Model Y was the best-selling car in Denmark, and the Model 3 ranked fourth. This May, the Skoda Elroq saw the highest number of registrations, a trend that began in April.

Adding to Tesla’s challenges, CEO Elon Musk’s increasing involvement in US politics has drawn attention and potentially impacted the company. Musk’s prominent role in President Donald Trump’s government and recent public criticism between the two led to a significant drop in Tesla’s stock value. Following their war of words, Tesla’s share price plummeted by almost 14.3 percent on Thursday, resulting in a market value loss of 150 billion dollars (977 billion kroner).