Tesla’s sales took a significant hit in January, according to official data, as CEO Elon Musk’s political statements sparked controversy. The slump comes amidst growing support from Musk for the far-right Alternative for Germany (AfD) party, leading to backlash from German consumers.
Tesla’s Declining Sales in Germany
Germany’s Federal Motor Transport Authority (KBA) reported that Tesla registered just 1,277 new vehicles in January 2025, marking a steep 59.5% drop compared to the same month in 2024. This sharp decline has pushed Tesla down to third place in Germany’s electric vehicle (EV) market, reducing its market share to below 10%.
Interestingly, this downturn for Tesla contrasts with the overall trend in Germany’s EV market. KBA data indicates that battery-powered vehicle sales across all brands rose by 53.5% year-over-year. This suggests that while interest in EVs remains strong, Tesla is losing favor with German consumers at a disproportionate rate.
Like many EV manufacturers, Tesla has faced challenges in Europe following the withdrawal of government subsidies. However, the American automaker’s losses are significantly greater than those of its competitors, raising questions about the impact of Musk’s political stance on Tesla’s brand perception.
The Cybertruck’s Role in Tesla’s Future
Despite struggles in the European market, Tesla is betting big on its latest release, the Cybertruck. The angular, stainless steel pickup has been generating global buzz, with pre-orders reportedly exceeding one million units. While it is initially targeted at the North American market, Tesla has hinted at possible modifications to make it compliant with European regulations.
However, the Cybertruck’s success in Germany remains uncertain. The country’s automotive landscape is dominated by sleek sedans and compact SUVs rather than large, heavy-duty trucks. Additionally, European safety and emissions regulations could pose significant hurdles for the Cybertruck’s approval and adoption.
The Tesla Cybertruck has also been struggling in the US and European markets, with inventory reportedly building as many EVs remain unsold.