The recent sales performance of Tesla in Germany has raised significant concerns for the brand. Only 885 vehicles were sold in April 2025, which represents an astounding 46% decline compared to the same month in the previous year. This downturn in sales is very alarming considering that Germany is Europe’s largest automotive market.
So what exactly is going wrong with Tesla’s sales in Germany?
The sales results for Tesla from last month are beyond disturbing and paints a picture of troubling trend. The KBA, German road traffic agency stated that Tesla’s sales from January to April in 2025 also dropped at an alarming rate of 60.4 percent in comparison to the previous year, sitting at a mere 5820 units.
Are Germans shunning electric cars? Far from it: While Tesla stock prices have plummeted, the German electric vehicle market as a whole is still growing tremendously. Take, for instance, newly registered electric vehicles in the country, which saw a whopping 53.5 percent increase in April compared to last year.
This contrast in the numbers shows that the main issue here isn’t a lack of demand for electric vehicles but rather specific challenges facing Tesla itself.
It’s also interesting to notice that Germany isn’t the only European market where Tesla is encountering challenges. In the UK, Tesla’s sales dropped to 512 vehicles in April, marking a 62% year-over-year decline. As for France, Tesla’s sales fell by 63%, despite an overall increase in EV market share.
These trends suggest that what is causing Tesla to have difficulties are not isolated incidents but instead a broader pattern that spreads across key European markets.
Factors contributing to Tesla’s decline in Germany
Several factors have converged to impact Tesla’s performance in the German market. The first one could be the Increased Competition. The once unknown Chinese manufacturer BYD has been gaigning space in the European market, as have other brands, such as XPeng.
BYD saw its April sales in Germany increase more than eight time to 1,566 units. This scenario may indicate a growing preference for alternative EV brands between German consumers.
The controversies concerning the CEO of Tesla, which directly influence the branding image of the company, are perhaps the second reason that contributes to Tesla’s downfall in Germany. Public controversies surrounding Musk are not new and this, by now, is common knowledge.
Besides these controversies, Musk being a Trump administration member and supporting Germany’s far-right party AfD has also drawn extreme vitriol from the public. Protests have occurred because of these particular affiliations and the brand’s marketing image has since suffered tremendously, with some consumers regretting buying Teslas.
Lastly, the declining marketing value seems to affect Tesla. The competition is relentlessly ramping up with the new Model Y and other Tesla vehicles, especially for the Chinese market offering tons of vehicles. The expectation towards updated versions is high and the offering for entry-level alternatives is practically non-existent.
Looking ahead: what to expect from Tesla?
It’s safe to say that Tesla is running out of justifications for its weak performance in Europe in the past months. While the delayed delivery of the new Model Y RWD could certainly be a factor, it doesn’t explain a 50% drop in overall sales.
As a new strategy to try to change this scenario, Tesla has introduced 0% financing on the new Model Y and Model 3 across several European markets, along with discounted lease options that don’t require any money down on the moment of the purchase, including in Germany.
However, despite these bold incentives, it is likely that Q2 results in Europe will not differ much from the stagnant performance of Q1.
The real test will come in Q3, when the Model Y RWD is expected to be fully available in the market. By then, if the company still fails to demonstrate a rebound with its complete lineup on the market, it may be reasonable to assume that demand for Tesla vehicles in Europe is beginning to crumble.
