Tesla is preparing to expand into Estonia and Latvia, having entered the Baltic region with its Lithuania debut in late 2024.
As first reported by the news blog EVWire, the US brand has established its Estonian company, ‘Tesla Estonia OÜ,’ on December 16, 2025, about a month after ‘Tesla Latvia SIA’ was registered.
The companies list “repair and maintenance of motor vehicles” as areas of activity, which hints at the potential launch of service centers in both countries.
In late 2024, the company officially arrived in Lithuania, with the opening of its first store in the country. Tesla currently operates a sales and service center in Vilnius.
The store opened about four months after the official local company was established there.
Despite not having a sales network established in either of the countries, Tesla leads EV sales in both markets with only imports.
The Model 3 and Model Y are the best-selling electric vehicles in the Estonian market, according to the Estonian Transport Administration.
In May, the company opened its first Superchargers in Estonia, as reported by Juurikas on X.
By then, Tesla‘s Director of Charging in North America, Europe, Middle East, Africa and Asia Pacific regions, commented on the post, saying that it’s been a “long time coming.”
“And with our pre-assembled Superchargers, which often have become our highest quality builds,” de Zegher added.
According to X user ‘piloly,’ who usually tracks data registration of the Elon Musk-led company across Europe, Tesla sales in Estonia last year have dropped 62% compared to 2024, as the auto market generally contracted in 2025.
EV Adoption
According to the platform EV Volumes, however, the EV share of passenger cars in Estonia increased to 17.3% between January and August 2025, compared to 10.2% in the same period a year before.
In Latvia, battery electric vehicles (BEV) represented 18.4% of all car sales in the first eight months of 2025, driven by policy updates.
In April last year, the Latvian government raised the total funding support for EV and hybrid adoption by €11 million ($12.85 million), which included EV purchase grants, setting subsidy levels at €4,500 for BEVs, and €2,250 for plug-in hybrids (PHEV).
European Sales
In 2025, Tesla experienced a decline in sales across multiple European markets, due to increased competition from Chinese automakers, the refresh of the Model Y, and reputational damage linked to CEO Elon Musk’s political activities.
The introduction of the more affordable Model Y across several markets in the final quarter of the year did not help the company to recover demand ahead of the year-end.
In France, Tesla registrations dropped 37% year over year in 2025, while German sales nearly halved from 2024.
Swedish vehicle registrations fell by more than 66% last year, with only a third of the usual number of vehicles sold in 2024. The decline has been worsened by an ongoing labor strike that has already lasted over two years.
In Norway, on the other hand, the company was the best-selling brand and saw sales jump 41.3% year over year to 34,285 vehicles.
Sales more than tripled in Iceland, with 1,300 EVs registered in 2025, and nearly increased threefold in Turkey, where 20,000 vehicles were listed.
In the UK, where the Standard Model Y was recently launched, the SUV ranked as the best-selling EV in December. However, registrations were still 10% lower year over year in full 2025.
This year, the company expects to secure approval of its Full-Self Driving (FSD) software in Europe, with an upcoming test with the Dutch road safety authority scheduled for next month.
