Volkswagen Beats Tesla To Become Europe

• Tesla lost the EV sales crown in Europe.
• Despite having the Model Y and Model 3 in the top three, Tesla couldn’t fend off Volkswagen’s growth.
• Thanks to the popularity of the ID.3, ID.4 and ID.7, VW outsold Tesla and is now Europe’s biggest EV brand.

It’s no surprise that Tesla hasn’t been doing great lately, and the latest sales figures from Europe show that the company that was once hailed as a disruptor is stuck in legacy mode. In fact, the tables have turned, with traditional automakers, which were labeled as laggards a few years ago, gaining serious steam and beating Tesla at its own game.

Volkswagen, one of the most recognizable car brands in the world, sold more electric cars in Europe last year than Tesla, proving that a legacy automaker can, in fact, spar with the best of them. And it’s not just Volkswagen–BMW, Skoda and Audi also have a place on the list of the best-selling EV makers in Europe.

VW sold 274,417 EVs in 2025 in the European Union, the United Kingdom and the countries that make up the European Free Trade Association (EFTA): Iceland, Liechtenstein, Norway and Switzerland. That’s a 56% increase over 2024, and it’s mostly due to the success of the ID.3 hatchback, ID.4 crossover and ID.7 sedan and wagon, according to DataForce, quoted by Automotive News.

None of VW’s EVs got a spot on the podium, but combined, they outsold Tesla’s Model Y and Model 3 to secure the overall victory for the German automaker.

By contrast, Tesla sold 238,765 EVs in Europe last year, a 27% decline year-over-year. The Model Y was the best-selling EV, with 151,331 units, down 28% from 2024, while the Model 3 was the third-best-selling model, with 86,261 units, down 23.6%.

Best-selling EV brands in Europe in 2025

Source: DataForce

It’s a huge win for Volkswagen, which has had a rough time figuring out how to make a likeable EV. When the ID.3 and ID.4 debuted, they were riddled with software issues, but the company seems to have finally figured out how to iron them out and ship cars that just work. The stories of stuck touchscreens, unresponsive buttons and laggy menus are well documented, but the latest software versions have largely fixed the problems.

That’s great for VW, which is gearing up to launch even more affordable EVs, starting with the ID. Polo and ID. Polo Cross. These cars will integrate the lessons learned from the ID.4, which means they’ll have proper buttons for essential functions–including for the rear electric windows.

But it’s not just Volkswagen that has to gain from Tesla’s downfall. BMW is slowly creeping up the ladder, securing a solid third and preparing for a sales boom, thanks to the new iX3 crossover and upcoming i3. The same goes for Skoda, which made a big splash with the affordable Elroq. Audi also finished in the top five, recording a 51% increase in European sales last year.