Tesla has experienced a sharp decline in sales in Germany, with new registrations dropping nearly 60 percent in January 2025 compared to the same period last year, according to the Federal Motor Transport Authority. This slump comes despite an overall 53.5 percent increase in battery-powered electric vehicle sales across the country. While the withdrawal of government EV subsidies and a general slowdown in demand have impacted the market, experts suggest that Tesla’s struggles go beyond economic factors. CEO Elon Musk has recently drawn widespread criticism for inflammatory political statements, including remarks at an Alternative für Deutschland (AfD) conference urging Germans to “move beyond” their Nazi guilt. His controversial stance, coupled with a video appearance at Trump’s inauguration celebrations, has led to consumer backlash across Europe.
The fallout is evident beyond Germany, with Tesla sales also plummeting in Sweden, Norway, and the Netherlands. A Dutch survey even found that a third of Tesla owners are considering selling their vehicles due to growing „Tesla shame.“ In Berlin, activists recently projected anti-Tesla messages onto the company’s Gigafactory, underscoring public discontent.
Additionally, Musk has faced accusations of making gestures associated with far-right symbolism, further tarnishing Tesla’s image. Analysts warn that the ongoing controversies could have lasting consequences for Tesla’s position in Germany, one of Europe’s most important automotive markets.