Decline in Tesla Sales Continues in Germany
Tesla’s sales in Germany have dropped for the fifth month in a row, according to data released by the country’s Federal Motor Transport Authority (K.B.A.). Registrations of new Tesla cars plummeted more than a third compared to May last year. This decline is part of a broader trend across Europe, where Tesla sales have been underwhelming. In France, Tesla sales fell by 67%, and in Spain, they dropped by 29% in May.
Exception in Norway
Norway was the exception, with Tesla selling 2,600 cars in May – more than triple the number sold the previous year. The surge in Norway was largely driven by deliveries of the newly revamped Model Y. In contrast, Volkswagen’s sales of its electric ID.7 model in neighboring Sweden were nearly double that of Tesla’s new Model Y, while Tesla’s overall sales in Sweden dropped by 53%.
Growing Demand for Electric Vehicles
Despite Tesla’s struggles, the demand for electric vehicles (E.V.s) continues to grow in Germany and other European countries. In Germany, sales of battery-powered cars increased by nearly 45% in May compared to the same period last year. Spain saw a 72% growth in overall electric car sales, even as Tesla’s sales declined.
Rise of BYD in Germany
BYD, Tesla’s main competitor from China, saw a ninefold increase in demand in Germany. The company has been gaining ground in Europe despite facing a 17% tariff imposed by the European Union in 2024. BYD recently overtook Tesla as the world’s top seller of electric cars.
Impact of Elon Musk’s Political Involvement
Tesla’s sales have been affected by Elon Musk’s foray into politics, particularly his support for former President Trump and several far-right parties in France, Germany, and Italy. Protests against Musk’s political stances have contributed to the decline in Tesla’s sales. In April, Tesla reported a 13% drop in vehicle sales in the first quarter compared to the previous year, with profits hitting their lowest level in four years.
Conclusion
While Tesla faces challenges in Europe, the overall market for electric vehicles continues to grow. As competition from companies like BYD intensifies, Tesla will need to adapt to changing consumer preferences and political landscapes to regain its momentum in the region.
