In January 2025, Tesla experienced a staggering 59.5% decrease in car sales in Germany, with only 1,277 units registered compared to 3,150 during the same month last year. This dramatic decline mirrors a broader trend across Europe, where Tesla's sales dropped by over 50% compared to the previous year. The overall German auto market, in contrast, saw only a slight decrease of 2.8%, indicating that the issues are specific to Tesla rather than the broader electric vehicle (EV) sector, which enjoyed a 53.5% increase.
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Analysts attribute this drop to two main factors: the ongoing transition to the new Model Y and the mixed reactions to CEO Elon Musk’s political engagements, which have not resonated well with European consumers. The Model Y refresh is viewed as insufficient to attract buyers who are increasingly leaning towards competitive electric vehicles that offer better features and pricing.
As Tesla grapples with this significant setback, the implications for its brand image and market share in Europe raise concerns that could also affect its performance in the U.S. market if similar trends were to emerge.
News Source: electrek
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