FRANKFURT, Germany – Data from the European Automobile Manufacturers’ Association indicates a significant downturn for Tesla in Europe. Sales of Tesla electric vehicles plummeted by 49% in January and February compared to the same period last year, despite overall growth in the electric vehicle market.
Several factors may be contributing to this decline. Concerns have been raised about Tesla's aging vehicle lineup. Furthermore, CEO Elon Musk's association with the Trump administration and his recent endorsement of Germany's far-right Alternative for Germany party have sparked considerable controversy.
Competition in the EV sector is intensifying, with major automakers, including China's BYD, increasing their production. BYD recently announced record revenue of 777.1 billion yuan ($107 billion) for 2024, driven by a 40% surge in electric and hybrid vehicle sales. The company has also unveiled a new ultra-fast EV charging system, rivaling the speed of traditional gasoline refueling.
Specifically, Tesla's sales dropped from 37,311 units in January and February 2024 to just 19,046 this year. This occurred against a backdrop of a 28.4% increase in overall battery-electric car sales across Europe.
Musk's support for the AfD party has drawn strong criticism from German politicians and media. Tesla vehicles and dealerships have faced protests in both the U.S. and Europe due to the AfD endorsement and Musk's advisory role to former U.S. President Donald Trump.
Globally, Tesla's sales are experiencing a slowdown. The company reported its first annual sales decrease in over a decade this past January. The new Cybertruck has faced numerous recalls, most recently for potentially detached windshield panels.
This latest issue marks the Cybertruck's eighth recall since deliveries commenced just over a year ago.