Tesla’s sales in Germany experienced a significant decline in January 2025, with new vehicle registrations dropping by 59% compared to the same month last year, totaling only 1,277 units. This marks the lowest monthly sales figure for Tesla in Germany since July 2021.
This downturn in Germany is part of a broader trend affecting Tesla’s performance across Europe. In France, the company saw a 63% decrease in sales during the same period. In the United Kingdom, Tesla’s sales fell by 8%, even as the overall market for battery electric vehicles grew by 42% year-over-year.
Several factors may have contributed to this decline. Industry analysts suggest that increasing competition from other electric vehicle manufacturers, the phasing out of key EV subsidies, and a lack of new model introductions in the European market have impacted Tesla’s sales. The company’s last new vehicle launch in Europe was the Model Y in 2021, leading to an aging product lineup compared to competitors.
Additionally, Tesla CEO Elon Musk’s recent political endorsements, including support for Germany’s right-wing Alternative for Germany (AfD) party, have sparked controversy and may have influenced consumer sentiment. German Chancellor Olaf Scholz criticized Musk’s support of the “extreme right” as “completely unacceptable.”
Despite these challenges, Tesla plans to revitalize its European market presence with the introduction of an updated Model Y later this year. The company aims to address the increasing competition and regain consumer interest in the region.