Tesla has continued to lose ground in the German automotive market in January amidst a challenging environment for electric vehicle manufacturers, exacerbated by controversies surrounding CEO Elon Musk.
Sales of Tesla vehicles, which are exclusively electric, amounted to only 1,277 units in January, a nearly 60% drop from the previous year, according to the Federal Motor Transport Authority (KBA) on Wednesday.
Tesla’s sales in Germany have been declining for over a year, reflecting the difficulties in the electric vehicle market, particularly due to the cessation of purchase bonuses and inflation.
In January, however, this decline contrasted with a rebound in the electric vehicle market, where registrations increased by 53.5% year-on-year, with 34,498 units sold.
Tesla vehicles accounted for only 3.7% of the German electric car market, far from their average market share of nearly 10% in 2024.
Criticisms against Mr Musk have intensified in recent weeks due to his overt support for the German far-right, interfering in the campaign for the federal elections on 23 February.
Tesla has its only European factory near Berlin, producing the Model Y and Model 3. At the end of January, German activists claimed they projected onto the factory facade the controversial gesture Mr Musk made during a Donald Trump rally, which some interpreted as a Nazi salute.
The electric vehicle market has been struggling for over a year due to inflation and the lack of entry-level models, with existing models generally being more expensive than combustion-engine cars.
The market’s rebound in January compared to the previous year is relative; it is attributed to the low level of electric vehicle sales in January 2024 in Germany, following the expiration of government subsidies in December 2023.
