- Tesla’s sales fell dramatically in major European markets like Germany, France, and the UK.
- The Model Y’s upcoming local launch could explain why some are delaying EV purchases.
- However, recent surveys indicate the actions of Elon Musk may also be deterring EV buyers.
Tesla sales plummeted in several major European markets last month, including Germany, the UK, and France. This slump follows a rough year for the automaker, which sold 1.78 million vehicles globally in 2023, representing its first decline in annual sales in over a decade. While CEO Elon Musk’s increasingly polarizing behavior may be a factor in January’s poor performance, broader market forces are also likely at play.
Tesla’s Struggles in Germany and Beyond
In Germany, Tesla sold 1,277 vehicles last month, representing a massive fall of 59.5% from January 2024. Sales of EVs fell off a cliff in Germany last year after the government removed generous subsidies that had been propping up sales. Musk’s controversial behavior, including a hand gesture during a celebration of President Donald Trump’s inauguration that drew online comparisons to a Nazi salute, along with his ongoing support for a far-right political group in Germany, may have further dampened demand for Tesla EVs.
Read: Activists Project ‘Heil Tesla’ Onto Musk’s Own German Gigafactory
It’s not just in Germany where Tesla sales are on the decline. In France, Tesla sales collapsed 63% with just 1,143 new vehicles being registered. In the UK, Tesla sales have dropped 12%, and while that may not sound like a huge fall, it came despite overall EV sales in the market growing by 35%. Tesla has also reported sales declines of 44% and 38% in Sweden and Norway, as well as a 42% fall in sales across the Netherlands.
Market Shifts and the Model Y Question
There are likely several other non-Musk-related factors contributing to Tesla’s recent sales slump. Beyond ongoing global economic uncertainty, many prospective EV buyers in Europe may be holding out for the recently updated Tesla Model Y, one of the continent’s best-selling cars overall.
With its refreshed design, upgraded interior, and improved driving dynamics, many consumers are likely holding off on purchasing until the new Model Y is available in all trims, rather than opting for the pricey Launch Edition on offer. However, one could argue that Tesla’s discounts on the outgoing Model Y might counteract this hesitation, enticing some buyers who prioritize cost savings over waiting for the latest version.
In late January, a survey conducted by British publication Electrifying found that 59% of local EV owners and those planning to buy an EV have been deterred from buying a Tesla because of Musk’s recent actions. A poll of Swedish consumers has also found that the proportion of those with a negative view of Tesla has increased from 47% to 63%. Reuters reports that the number of locals with a positive view of the brand also fell from 19% to 11%.
Tesla’s dominance in the EV market isn’t disappearing, but between shifting subsidies, growing competition, and a CEO who never seems to stop making headlines for the wrong reasons, the road ahead looks increasingly bumpy.
