Tesla's glory days are over. At least in Europe's largest car market. Namely Germany, where sales have fallen by 62 percent.
Tesla's sales plummet in the German electric car market in 2025. Only 4,935 cars registered in the first quarter.
A new Model Y and the image Elon Musk has gained are cited as the primary reasons.
Tesla is experiencing a significant decline in Germany. Sales figures for electric cars show a 62 percent drop. This applies to the first quarter of 2025 compared to the previous year.
Only 4,935 new Teslas received new German license plates during the period.
The German market for electric cars generally grew, growing by 39 percent over the same period. This has given other car manufacturers more room.
The decline for Tesla has been ongoing. Sales fell 43 percent in March 2025. In February, the decline was a whopping 76.3 percent.
January ended with a decline of 59.5 percent. Conversely, the broader German electric car market rose by 35.5 percent in March alone.
Electric cars accounted for 17 percent of all new cars in Germany in March, according to figures from the German Road Traffic Authority, KBA.
The market for electric cars and German competition
Part of the explanation may be a production change. Tesla spent part of the first quarter rebuilding its factory in Germany for production of the facelifted Model Y.
Adjustments at the Berlin factory affected production, particularly in January and February.
However, the March figures suggest more than just production halts. Other factors are likely at play as well. Tesla's popularity appears to be under pressure.
The public's view of Elon Musk has changed. This is true in Germany and the rest of Europe. His statements are often perceived as controversial.
Especially because they are involved in German politics, where Musk has publicly supported the right-wing AfD.
The changing perception of Musk is now seen as a major reason. Customers seem less interested in the Tesla brand. This is happening as Musk divides the waters.
However, Germany's outgoing Economy Minister, Robert Habeck, sees an opportunity in the midst of the brand's significant decline. He believes Tesla's decline could benefit German car brands.
– The perception is that the passion for Tesla has suffered a lot in recent weeks and months, which may be a good opportunity for the automotive industry in Germany.
– So unexpectedly, there is also a gap in the market if they (German car brands, ed.) bring good, potent cars to the market.
Global sales and Tesla's stock price
The problems aren't just in Germany. Tesla delivered 336,681 cars in the first quarter. That's a 13 percent drop compared to the previous year.
The car brand's stock hasn't been doing well either. It has lost about 36 percent of its value since January. Since yesterday alone, it has fallen over 9 percent.
The decline comes despite a previous record high price, which was reached after the US election in 2024. The situation has therefore turned around significantly for the stock.
There is speculation about whether the situation can be improved.
Reuters more than suggests that this could happen if Musk resigns. The news agency refers to shareholders who are unhappy that Elon Musk spends more of his time optimizing the economy for the US government than he can devote to Tesla.
Musk's exit could possibly reassure investors, but that's still just speculation.
Tesla's challenges in Germany reflect a broader trend in the electric car market. Competition is constantly increasing. Read more about Tesla and other electric cars, like the new Ford Explorer, which is certainly not doing well either , here on this page.
