Tesla Faces Sharp Sales Decline in Germany Amid Political Controversy

Tesla’s sales in Germany dropped 70% in early 2025. A survey shows 94% of Germans won’t buy a Tesla. Competition and Elon Musk’s political stance are key factors. Read more.

Tesla is facing one of its most severe crises in the German market. The company’s sales plummeted by 70% in the first two months of 2025, and a recent survey of 100,000 Germans revealed that 94% have no interest in buying a Tesla. The reasons? Intensifying competition, a model transition, and a deteriorating perception of Elon Musk due to his political statements.

Germany is a critical market for Tesla in Europe, but things are spiraling out of control. In 2024, the company’s sales had already dropped by 41%, despite the overall 27% growth in the EV market. That decline was alarming enough, but the start of 2025 has shown an even steeper downward trend, with Tesla losing ground at an unprecedented pace.

One major factor is increased competition. European manufacturers like Volkswagen (ID.3, ID.4), BMW (Neue Klasse), Mercedes (EQC, EQS), as well as Asian brands like Hyundai (Ioniq 5), BYD, and Kia, are offering more advanced features, competitive pricing, and government-backed incentives.

But it’s not just about competition. The biggest blow to Tesla’s reputation in Germany came from Elon Musk himself. His public support for the far-right AfD party, involvement in political debates, and accusations of meddling in European elections have significantly damaged consumer trust. European authorities have already launched an investigation into Musk’s political interference, and some of his recent actions—such as gestures interpreted as Nazi salutes at Trump’s inauguration—have triggered a major scandal.

Some investors are hoping that the new Model Y will help Tesla recover, but current data suggests otherwise. Sales are not just declining for the Model Y, but also for the Model 3, indicating deeper underlying issues.

As a result, analysts predict that Tesla may significantly scale back its operations in Germany. If the downward trend continues, the viability of its Berlin Gigafactory, one of its most crucial production sites in Europe, may come into question.

Meanwhile, the EV revolution in Germany continues—just without Tesla at the forefront.

Source: electrek.co