Tesla’s car sales in Germany fell by 59% in January, marking its lowest monthly sales since July 2021. Despite a growing electric vehicle market, Tesla’s share has significantly dropped.
Tesla registered only 1,277 new cars in January, compared to previous months. This drop in sales comes even as Germany’s electric vehicle market saw a 54% growth. Tesla’s market share fell dramatically from 14% to 4%, according to the Federal Motor Transport Authority.
Political Controversy and Market Factors
The decline is attributed to multiple factors, including Elon Musk’s increasing political involvement. Musk’s public support for the far-right Alternative for Germany (AfD) party, which advocates for controversial policies, has sparked controversy. At an AfD event, Musk called for Germany to embrace its culture and move past historical guilt. He further fueled the backlash by hosting AfD leader Alice Weidel on his social media platform X.
Sales Decline Extends Beyond Germany
The sales slump has spread beyond Germany, with France experiencing a 63% drop and the UK seeing a 12% decline in January. Analysts suggest that inventory shortages and the upcoming Model Y launch in 2025 may have contributed to this downturn. Many customers have delayed their purchases, awaiting the new model.
Musk’s alignment with Donald Trump as a “special government employee” has also raised concerns about Tesla’s brand perception, potentially affecting sales across Europe.