The popularity of Tesla vehicles is waning in Germany, Europe’s largest automotive market. Sales of Tesla are also declining in other major European countries.
According to the German Federal Motor Transport Authority (KBA) on the 4th (local time), the number of new Tesla vehicle registrations in Germany in May fell by more than 35% compared to the same period last year. This marks five consecutive months of sales decline for Tesla.
The situation is similar in France and Spain. Tesla sales decreased by 67% year-on-year in France and by 29% in Spain. In contrast, overall electric vehicle sales have significantly increased. In Germany, sales of battery electric vehicles (BEV) rose by 45% year-on-year in May, and Spain saw a 72% increase. Tesla seems to be going against the trend.
Norway was the only exception. Tesla sold 2,600 units there thanks to the release of the upgraded Model Y, achieving more than three times the results compared to the previous year. However, in Sweden, Volkswagen's new electric vehicle ID.7 sold nearly twice as many units as Tesla, leading to a 53% drop in Tesla sales compared to the same month last year.
Elon Musk, Tesla's Chief Executive Officer (CEO), explained the sluggish sales in Europe by noting that "the overall European auto market is weak." However, The New York Times (NYT) reported that the electric vehicle demand in major European countries is actually increasing, making his argument less convincing.
In fact, the number of registrations for Chinese BYD vehicles, which has emerged as Tesla's biggest competitor in Germany, increased ninefold. BYD surpassed Tesla to take first place in global electric vehicle sales in the first quarter. Despite the European Union imposing a high rate tariff of 17% on Chinese electric vehicles, BYD continues to expand in the European market.
The political fallout cannot be ignored. Musk's support for far-right political forces in France, Germany, and Italy, including U.S. President Donald Trump, is seen as a factor fueling resentment against him in Europe. Recently, protests criticizing this have taken place in front of Tesla's factory in Germany.
Meanwhile, Tesla announced that its global vehicle sales in the first quarter in April decreased by 13% compared to the previous year. Profits for the same period fell to their lowest level in four years.