TLDR
- Tesla sales grew in France (2.74%), Denmark (20.5%), Norway (14.7%), and Spain (3.4%) during September
- Sweden registrations dropped 64%, marking nine consecutive months of decline
- William Blair maintains Hold rating, citing margin pressures despite stock rally
- The $7,500 EV tax credit ended, creating U.S. demand surge and higher Q3 delivery estimates
- Stock trades near all-time highs on robotaxi developments and energy storage products
Tesla posted its first sales increases in France and Denmark for 2025 during September. The refreshed Model Y led the recovery, becoming Denmark’s best-selling vehicle.
France saw registrations climb 2.74% compared to last year. Denmark outperformed with a 20.5% jump.
The growth extended to other markets. Norway reported a 14.7% increase, with the Model Y and Model 3 taking the top two positions. Spain added 3.4% growth, driven by a 60% surge in Model Y registrations.
Sweden bucked the trend. Registrations plunged 64% to 1,726 vehicles, continuing a nine-month losing streak. The figure did improve from August’s 210 units.
European Market Faces Steep Competition
Tesla started delivering the updated Model Y across Europe in June. The company expected the refresh to reverse declining sales trends.
The first eight months of 2025 proved challenging. EU sales dropped 42.9% year-over-year. The broader European market fell 32.6%.
Chinese automaker BYD outsold Tesla in the EU during August. This marked the second time in 2025 that BYD claimed the top spot.
Andy Palmer from Electric Vehicles UK said Tesla needs new models to compete. The company hasn’t launched a mass-market vehicle since the Model Y in 2020.
Analyst Cites Near-Term Headwinds
William Blair analyst Jed Dorsheimer kept his Hold rating on the stock. He pointed to conflicting signals affecting the company’s outlook.
The $7,500 EV tax credit ended recently. This created a rush of U.S. purchases, boosting third-quarter delivery estimates.
Dorsheimer sees margin pressure ahead. Lower auto deliveries and reduced regulatory credit revenue could impact the next quarter.

The stock has climbed to near record levels. Robotaxi technology progress fueled investor enthusiasm. Elon Musk’s stock purchase and new energy storage products added momentum.
Barclays also maintained a Hold rating with a $275 price target. Dorsheimer carries a 5-star analyst rating with a 30.7% average return.
Model Lineup Aging Against Fresh Competition
Palmer noted the competitive landscape has changed. European and Chinese manufacturers continue launching new electric vehicles.
Tesla’s small model range faces pressure from newer offerings. More affordable EVs keep entering showrooms across Europe.
The Model Y refresh brought updates but not a completely new vehicle. Buyers now have numerous alternatives at various price points.
Tesla’s September performance showed improvement in four countries. Norway, Spain, France and Denmark all posted gains. Sweden remained the weakest market with continued declines.
The company delivered the Model Y and Model 3 as its primary offerings. Both vehicles compete in crowded segments with increasing options.