Tesla sales in Luxembourg have taken a sharp nosedive, data compiled from the National Society of Automotive Traffic (SNCA) shows. Monthly registrations of new passenger cars, a key indicator of new vehicle sales in grand duchy, reveal that only 68 Teslas were sold and registered in January 2025--a 44% drop from the 122 units recorded in January 2024.

But this decline is not due to a lack of interest in electric vehicles. In fact, Luxembourg’s EV market is booming.

SNCA data shows that nearly one in three newly registered cars (31.4%) in January 2025 was electric, a significant rise from just 18.1% in January 2023 and 21.5% in January 2024. This suggests that while demand for EVs is surging, Tesla is struggling to maintain its foothold.

The most striking trend is Tesla’s shrinking share within the electric passenger car segment. In January 2025, Teslas accounted for just 5.8% of total EV sales--a dramatic drop from December 2024, when they held a 24.3% share. This sharp decline signals a shift in consumer preferences, as buyers increasingly turn to competing brands over Tesla.

As Luxembourg’s electric vehicle market continues to expand, Tesla’s share appears to be on the decline, driven by factors such as increased competition, pricing and shifting consumer preferences. This trend is not limited to Luxembourg though--Tesla is losing ground across Europe, with the and reporting a nearly 60% drop in monthly registrations in Germany and a 63% decline in France. In Luxembourg, the brand’s presence remains modest, with Tesla cars accounting for just 1.1% of all passenger vehicles on the road as of January 2025.