Tesla sales decline across Europe, plummeting 59% in Germany: Here's why

Tesla Inc. experienced a significant drop in sales across Europe, with a sharp 59% decline in Germany, as reported by Bloomberg on February 6, 2025. This drop follows a series of challenges, including the company's political activities and internal production issues. Tesla shares also saw a 1.62% dip in pre-market trading on Thursday.

In Germany, Tesla's sales hit a low point, with only 1,277 new vehicles registered in January 2025, according to data from the German Federal Motor Transport Authority. This marks the company's weakest sales performance in the country since July 2021. Despite the overall EV market growth of 54% in January, Tesla’s sales were significantly lower, reflecting a growing disfavor towards the company's political stances and public remarks made by CEO Elon Musk.

Alongside the drop in Germany, Tesla also experienced a 63% sales decline in France and a 12% drop in the United Kingdom last month. These losses in the three largest European EV markets signal deeper issues for Tesla in the region.

Musk's controversial political influence is believed to be a factor in the company’s struggles. His recent live discussion on social media platform X with Alice Weidel, leader of the far-right AfD party, garnered backlash. Weidel's party has opposed Tesla's plans for a Berlin plant and has expressed skepticism about renewable energy. Musk's comments about minimizing Germany's focus on past Nazi-era atrocities before the 80th anniversary of the liberation of Auschwitz also sparked significant public outrage.

In addition to these political factors, Tesla’s production challenges have contributed to the sales slump. The company has been working on changes to its assembly plants, including manufacturing a redesigned version of the Model Y, which caused delays and lost production time.

While Tesla saw strong fourth-quarter deliveries in 2024, it failed to meet its full-year growth forecast. Meanwhile, competitors like Volkswagen and BMW gained market share in Germany’s EV sector, eroding Tesla's dominance.

Following the news, Tesla's stock closed 3.58% lower at ₹378.17 on Wednesday and continued to dip by 1.62% in pre-market trading on Thursday.