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Tesla's sales slump in Europe continued into 2026, with new car registrations sharply declining in the two major electric vehicle markets. According to data from the French Association for Automotive Manufacturers (PFA), Tesla's sales in France in January plummeted by 42% year-on-year, with only 661 cars sold, marking the lowest level in over three years. In what was once a bright spot market for Tesla in Europe last year, Norway saw a drastic 88% drop in registrations in January. The weak overall demand for Tesla in Europe in 2025 was partly due to consumer backlash against Elon Musk's support for the Trump administration and his public support of right-wing political figures in countries like Germany and the UK. Norway was the only major market in Europe where Tesla saw growth last year, with a 41% increase in registrations for the whole year, partly due to consumers rushing to buy before policy adjustments. However, in January of this year, the Norwegian government tightened the rules for VAT exemptions on electric vehicles, leading to a 76% drop in sales for the entire industry, with Tesla also being affected.
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