Tesla’s sales in Germany saw a sharp decline of nearly 60% in January, according to data from the Federal Motor Transport Authority (KBA). The drop follows CEO Elon Musk’s public support for the far-right Alternative for Germany (AfD) party, a move that has sparked political controversy. Tesla registered only 1,277 new vehicles in January, marking a 59.5% decrease compared to the same month in 2024. This significant loss has pushed Tesla down to third place in Germany’s electric vehicle (EV) market, with its market share now below 10%.
The downturn comes despite an overall rise in battery-powered vehicle registrations, which increased by 53.5% across all brands. Tesla had previously led Germany’s EV market, benefiting from strong demand and local production at its Gigafactory Berlin-Brandenburg. However, the removal of government subsidies for electric vehicles and a general decline in consumer enthusiasm for EVs have negatively impacted sales. While other manufacturers have faced similar challenges, none have experienced losses as severe as Tesla’s.
Industry analysts suggest that Musk’s political stance may be further alienating German consumers. The billionaire has openly supported AfD leader Alice Weidel and criticized German political figures, including President Frank-Walter Steinmeier and Chancellor Olaf Scholz. His remarks have drawn backlash in a country where AfD remains controversial, and where skepticism toward EVs is prevalent among the party’s voter base.
Ferdinand Dudenhöffer, director of the Center for Automotive Research in Germany, described Musk’s behavior as “extremely damaging,” emphasizing that Tesla’s brand is closely tied to its CEO. He noted that many consumers may be distancing themselves from the company due to Musk’s controversial statements. Beyond the political implications, Tesla’s sales slump reflects a broader shift in Germany’s EV landscape. The phaseout of state incentives has made electric cars less financially attractive to buyers, leading to a slowdown in demand.
Established automakers such as Volkswagen and BMW have adapted to the changing market by introducing more competitively priced models, while Tesla has struggled to maintain its previous growth trajectory. As Germany prepares for federal elections later this year, Musk’s influence on political discourse remains a topic of debate. Whether Tesla can recover its standing in the German EV market will depend not only on economic factors but also on how Musk’s actions continue to shape public perception of the brand. – By MENA Newswire News Desk.