The two main reasons are believed to be the introduction of the new Model Y and the disapproval of Tesla CEO Elon Musk and his meddling in politics, which is especially not appreciated in Europe.
At the time, we didn’t have the number from Germany, but now we do.
Reuters reported that Tesla’s sales were down 59.5% in January:
German road traffic agency KBA’s website on Wednesday showed the number of newly registered Tesla cars fell 59.5% to 1,277 in January, while the overall German market was down just 2.8% at slightly more than 207,000 vehicles during the month.
This is undoubtedly a Tesla problem because the German auto market was down just 2.8% in January, and the battery-electric market was up 53.5% during the period.
These are now Tesla’s sales in Europe in 2025 compared to 2024:
Country
Jan-25
Jan-24
% YoY
Germany
1,277
3,150
-59.5%
UK
1,293
1,581
-18.2%
France
1,141
3,118
-63.4%
Netherlands
926
1,610
-42.5%
Norway
663
1,109
-40.2%
Spain
269
1,094
-75.4%
Sweden
394
730
-46.0%
Denmark
451
763
-40.9%
Portugal
380
551
-31.0%
Total
6,794
13,706
-50.4%
Electrek’s Take
This is pretty nuts. Obviously, Tesla will use the Model Y transition as an excuse, and there’s some truth to it. However, Tesla was transitioning the Model 3 around the same time last year, which also negatively affected 2024 sales.
Now, it’s true that Model Y is more impactful than Model 3, but I think it’s also clear that the Musk effect is at play too, it’s just impossible to tell by how much.
But I do think it will be quite disastrous, especially considering the Model Y refresh is not significant enough to convince people who are on the fence.
It feels like the negative sentiment toward Tesla is still gaining momentum rather than slowing down.
That’s not good for the EV industry. At least they have more options in Europe. It will hit even harder if we start seeing a similar impact on Tesla in the US.
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