Tesla Sees Major Sales Decline in Germany Amidst Political Controversy
Berlin, Wednesday, 5 February 2025.
Tesla’s sales in Germany plunged 59% last month, coinciding with CEO Elon Musk’s controversial political involvement. Observers anticipate Tesla’s strategic adjustments to regain market share by 2025.
Market Performance Details
Tesla Inc. (TSLA) registered only 1,277 new vehicles in Germany during January 2025, marking its lowest monthly total since July 2021 [1]. This significant decline occurred while the broader electric vehicle market in Germany experienced a 54% growth [1]. The company’s European challenges weren’t limited to Germany, as Tesla also recorded a 63% sales drop in France [2][3] and a 12% decrease in the UK [1], representing declines in Europe’s three largest EV markets.
Political Context and Impact
The sales decline coincides with CEO Elon Musk’s increased political activism in Germany, including his public support for the far-right Alternative for Germany (AfD) party [1][3]. Musk hosted a live discussion with AfD leader Alice Weidel on his social media platform X and made controversial remarks about German culture and history [1]. Public sentiment has shifted notably, with a YouGov poll indicating that most German citizens view Musk as uninformed about their country and believe he should avoid involvement in their politics [7].
Broader European Context
The impact extends beyond Germany, with Tesla experiencing significant sales declines across multiple European markets. Sales have fallen by 18% in the UK, 31% in Portugal, and over 40% in Denmark, Sweden, Norway, and the Netherlands [7]. In Sweden, Tesla’s public image has deteriorated significantly, with only 11% of the population now holding a positive view of the company [8]. The Nordic region, traditionally a strong market for electric vehicles, has seen Tesla’s market share in Norway drop from 22% in January 2024 to just 7.4% in January 2025 [8].
Strategic Challenges and Future Outlook
Tesla faces multiple challenges beyond political controversy. The company is currently transitioning its assembly plants to produce a redesigned Model Y, its bestselling vehicle, which will result in several weeks of lost production this quarter [1]. Additionally, the withdrawal of government subsidies in late 2023 and increasing competition in the European market have impacted sales [2]. French government ministers have recently called for the European Commission to suspend CO2 emissions regulations, warning about potential benefits to Chinese manufacturers and Tesla [3].