Volkswagen Overtakes Tesla as Europe's Leading Electric Vehicle Seller
Wolfsburg, Thursday, 5 February 2026.
JATO Dynamics data reveals a significant market shift: Volkswagen reclaimed Europe’s top EV spot in 2025 with a 56% sales surge, decisively overtaking Tesla, whose registrations plummeted 27% amidst an aging lineup.
A Reversal of Fortunes
The shift in leadership represents a dramatic turnaround from the previous year. In 2024, Tesla outsold Volkswagen (VOWG.DE) by a margin of nearly two-to-one in the European market [2]. However, 2025 saw Volkswagen end Tesla’s four-year reign as the region’s top electric vehicle (EV) seller [3]. The German automaker recorded 274,278 battery electric vehicle (BEV) sales, while Tesla’s volume fell to 236,357 units [1]. This resulted in a sales gap of 37921 vehicles in Volkswagen’s favor, underscored by the broader market context where overall European EV registrations jumped by 29% [1].
Portfolio Diversity vs. Single-Model Reliance
Volkswagen’s resurgence was driven by a broad portfolio performance rather than reliance on a single model. The brand saw significant growth across its ID lineup: sales of the ID.3 increased by 44% to nearly 79,000 units, and the ID.4 rose 24% to over 80,000 units [2]. Most notably, the new ID.7 sedan saw sales skyrocket by 137%, surpassing 76,000 units [2]. Conversely, while Tesla’s Model Y remained the single best-selling EV in Europe with over 151,000 registrations, its sales volume declined compared to the previous year [2]. This data suggests that while Tesla retains individual model popularity, Volkswagen’s diversified strategy is capturing a larger aggregate share of the expanding market.
Headwinds for the American Giant
Tesla’s 27% decline in registrations [1] can be attributed to a confluence of competitive and reputational factors. The company is contending with an ageing vehicle lineup that is facing stiff competition from both legacy European automakers and a rising wave of Chinese rivals [1]. Furthermore, the brand has faced specific regional headwinds; in Germany alone, Tesla registrations collapsed by nearly 48% to approximately 19,000 units [2]. Market analysts also point to a consumer backlash in Europe regarding CEO Elon Musk’s political alignment with far-right parties, which may be dampening brand sentiment among the continent’s buyers [1].
Global Context and Strategic Adjustments
This European setback mirrors Tesla’s broader global challenges. In 2025, Chinese automaker BYD dethroned Tesla as the world’s top EV maker, delivering over 2.2 million battery-electric vehicles globally compared to Tesla’s 1.6 million [2]. Meanwhile, the Volkswagen Group is scaling its global operations, with battery-electric deliveries rising 32% to nearly 983,000 vehicles [2]. However, the German automotive giant is not without its own internal recalibrations. Reports from early February 2026 indicate that Porsche, a key Volkswagen Group brand, may cancel its planned electric 718 Cayman and Boxster models due to development delays and rising costs, highlighting the complex financial realities facing legacy manufacturers transitioning to electric powertrains [5].