Tesla sales drop 25% in Portugal

Despite the decline, Tesla remains the best-selling EV brand in Portugal, though competition is closing in.

Tesla has suffered a significant decline in sales in Portugal, with a 25.7% drop in the first quarter of 2025 compared to the same period last year.

According to data released by the Portuguese Automobile Association (ACAP), the company experienced the steepest decline among the country’s top-selling brands.

Between January and March, Tesla registered 2,145 new vehicles in Portugal, a sharp contrast to the overall market, which shrank by just 0.8%.

While the electric vehicle segment grew by 27.1%, Tesla’s drop stands out as the most severe among leading brands.

Despite the decline, Tesla remains the best-selling EV brand in Portugal, though competition is closing in.

Peugeot more than doubled its sales, securing second place, while Chinese automaker BYD also saw a significant increase, moving into fourth place.

Tesla’s European Struggles

Tesla’s decline in Portugal reflects a broader trend across Europe.

The company saw steep sales declines in key markets, including France, the Netherlands, Sweden, Norway, and Denmark, where drops reached up to 50% year-over-year in the first quarter.

According to the European Automobile Manufacturers Association (ACEA), Tesla’s sales in the EU plummeted by 49% in January and February, while overall EV sales surged by 28.4%.

The downturn in sales coincides with Tesla preparing to release a new version of the Model Y, its best-selling model, which may have led consumers to delay purchases.

However, industry analysts also attribute the decline to Tesla CEO Elon Musk’s recent political involvement.

Tesla’s struggles are further compounded by rising competition from Chinese manufacturers like BYD, which has already surpassed Tesla in EV sales in some markets.

In Portugal, the growing popularity of competitors threatens Tesla’s long-standing dominance in the EV segment.

Portuguese Market Trends

Portugal’s EV market remains strong, with sales increasing by 26.8% in the first two months of the year, reaching 7,211 new registrations.

However, gasoline-powered vehicles continue to dominate, despite a 36% drop in sales.

Overall, new car sales in Portugal declined by 6.3% in early 2025, totaling 33,967 units.