Tesla’s European Sales Plunge in 2025
Tesla is facing a significant decline in its European sales, with Germany seeing the steepest drop in January 2025. According to the German Federal Motor Transport Authority, Tesla registered only 1,277 new vehicles, marking its lowest monthly sales since July 2021.
Tesla’s Performance Across Major European Markets
Tesla’s sales decline was not limited to Germany, as similar trends were observed in other major markets:
- Germany: Down 59% (1,277 vehicles)
- France: Down 63%
- United Kingdom: Down 8% (while the UK’s EV market grew 42%)
This downturn comes at a time when the European EV market is expanding, suggesting that Tesla is losing ground to competitors rather than being affected by an overall industry slump.
Reasons Behind Tesla’s Decline in Europe
Industry experts attribute Tesla’s weak performance to several key factors:
✔ Rising competition: European and Asian automakers are introducing newer, more affordable EVs.
✔ Lack of major updates: Tesla’s current lineup has remained largely unchanged, making it less competitive.
✔ Elon Musk’s political controversies: Musk’s endorsement of Germany’s far-right Alternative for Germany (AfD) party may be influencing consumer sentiment.
Musk’s Political Influence on Tesla’s Brand
Musk’s increasing involvement in politics appears to be affecting Tesla’s image in Germany and beyond. His support for AfD leader Alice Weidel, his clashes with UK Prime Minister Keir Starmer, and his alignment with former US President Donald Trump—who has threatened tariffs on EU imports—may be alienating some European customers.
Analysts suggest that Tesla’s core EV buyers, who tend to be progressive and environmentally conscious, might be distancing themselves from the brand due to Musk’s political stance.
Tesla’s Stock Reaction to Sales Decline
Following reports of the European sales drop, Tesla’s stock (TSLA) fell by 2.63% to $381.90. Investors are now concerned about whether Tesla’s European struggles will impact its overall financial performance in the coming months.
Conclusion
Tesla’s 59% sales drop in Germany, combined with similar declines in France and the UK, signals growing challenges for the brand in three of Europe’s biggest EV markets. With increasing competition, a lack of major vehicle updates, and the potential impact of Musk’s political views, Tesla may need to adjust its strategy to maintain its market share.
Despite the expansion of the European EV market, Tesla is losing ground, raising questions about its long-term competitive edge in Germany and beyond.
