Germany’s Federal Motor Transport Authority, K.B.A., data shows that registration of new Tesla cars is more than a third of the same month last year, despite being Europe’s prime location for car sales
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More and more car buyers are becoming wary of Tesla across Europe. Germany has recorded a drop in EV sales for the fifth month in a row, although the country saw an overall increase in electric vehicle purchases.
Germany’s Federal Motor Transport Authority, K.B.A., data shows that registration of new Tesla cars is more than a third of the same month last year, despite being Europe’s prime location for car sales.
Elon Musk’s Tesla has been witnessing a steep drop in sales, which partly has precedence on his embrace of right-wing ideology.
Musk officially backed Germany’s far-right AfD party ahead of the country’s parliamentary elections. He is also a strong critic of unions, with Tesla having clashed with labour organisations in Scandinavian countries.
The Tesla CEO contributed almost $300 million towards re-electing U.S. President Donald Trump and later pushed for the Trump administration to reduce the size of federal agencies. This sparked protests at Tesla dealerships throughout Europe.
Other EV makers boom in Germany
It’s not like car buyers in Germany have given up on electric vehicles altogether. Sales of China’s BYD cards, Tesla’s main rival, have grown ninefold in Germany. The company took Tesla’s title as the world’s largest EV seller earlier this year.
The company has been rapidly expanding into European markets, with plans to establish local production at its plants in Hungary and Turkey to counter the EU’s higher tariffs on Chinese-made EV imports. Additionally, BYD intends to raise up to $5.2 billion through a share sale in Hong Kong to support its global expansion, according to a source familiar with the deal.
Tesla sales plunge in other countries
The Musk-run company has been losing customers in other European countries, too. Tesla’s new car sales in Britain tumbled more than 45 per cent from a year earlier in May, preliminary data from research group New AutoMotive showed on Wednesday.
The automaker sold 1,758 units in Britain last month, down from 3,244 a year earlier, the data showed.
Sales in France dropped by 67 per cent, in Spain by 29 per cent and in Sweden by 53 per cent. However, Norway remains a rare bright spot, with sales tripling thanks to the revamped Model Y.
Why have Tesla’s sales dropped?
Analysts attribute Tesla’s struggles to growing competition from Chinese brands, EU tariffs on Chinese EVs, and consumer backlash against CEO Elon Musk’s political affiliations and activism in Europe.
Musk downplayed the issue, calling the European market “quite weak,” but data shows rising EV adoption overall, suggesting Tesla is losing market share rather than the market shrinking.
Tesla’s Berlin Gigafactory supplies Europe but has faced production retooling delays and market headwinds, contributing to the sales slump.
