Tesla loses – Volkswagen takes over: Europe’s EV ranking is being reshuffled.

The figures come from the consulting firm Jato Dynamics, which analyzed the European market. Accordingly, Volkswagen sold just under 275,000 pure electric cars across Europe in the past year – a rise of 56 percent compared with the previous year. Tesla, by contrast, reached around 237,000 vehicles, which represents a decline of 27 percent.

VW benefits from the mid-size car boom

The reasons for VW's rise lie not only in the breadth of the group, but also in timing. According to Motortrader, demand for mid-size vehicles such as the ID 7 mainly drove the growth. The Wolfsburg group, long criticized as hesitant about electric propulsion, now benefits from having placed its offering in several segments – and thus reaches buyers who do not necessarily seek an SUV.

Tesla, on the other hand, has a structural problem according to Jato Dynamics: the range of offerings is comparatively narrow, many models have already been on the market for a long time. What in the early years was considered an advantage – few vehicles, clear focus – is increasingly seen in the mature market as a gap.

Model Y remains a best-seller – despite the decline

Notably: Despite the declines, Tesla remains ahead across its individual models. The Model Y continues to be the best-selling electric car in Europe, even though sales fell by 28 percent. In second place is the Skoda Elroq, a representative from the VW family. Behind it is the Tesla Model 3, which also lost significantly – down 24 percent.

The market itself is growing strongly. The number of electric car registrations in Europe rose in 2025 by 29 percent. That Tesla is falling back in this environment is therefore not a question of demand – but of positioning.

Electric cars reach 20 percent market share

The overall market also grew, albeit more moderately. Because sales of petrol and diesel vehicles were weak, the European car market as a whole shows an increase of 2.3 percent. Pure electric cars now account for 20 percent of new registrations.

For Tesla, that means: The market is moving in the direction the company has promoted for years – only now others are benefiting more from it.

Competition from China – and from Chinese factories

Another factor is China's growing role in the European market. Jato Dynamics also sees Tesla's slump as a result of the increased competition from China. This is not only about Chinese brands, but also about vehicles from European manufacturers produced in China.

Daniele Ministeri, Senior Consultant at Jato Dynamics, puts it this way: The increasing presence of vehicles produced in China on the continent is not only an expression of the rise of Chinese brands, but also reflects the registrations of European models produced in China. These include Mini Cooper, Dacia Spring and Cupra Tavascan.