Tesla sales plunge 45% in Europe in January..Elon Musk's animosity?
Feb 27, 2025
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Tesla sold 9945 units in January 2025, according to data from the European Automobile Association (ACEA). This is a 50% decrease from 18,161 units in January 2024.
Tesla has been struggling to sell new cars in Europe since the end of last year. Sales fell 50.3% in the EU in January 2025 and plunged 45.2% year-on-year in the UK. This is shocking compared with a 37% jump in sales of BEVs across Europe in January.
Sales were particularly sluggish in Germany, with sales falling 59.5% year-on-year to 1,277. In France, it fell 63 percent to 1,143 units.Compared to Tesla's underperformance, China's SAIC sold 22,994 electric vehicles in January.
There are several factors that can explain Tesla's sluggish performance. One main reason is that the negative side surrounding the controversy over CEO Elon Musk's participation in politics is highlighted.
Including his saluting attitude and blatant right-wing political views. This has sparked debate across Europe. In particular, his support for the German far-right AfD party helped to damage the public image. This could affect Tesla's brand perception.
Another factor is the timing of the release of a new model with a partial change in Model Y. Many customers are waiting for the new Model Y, which will appear in the first half of 2025.As Tesla retooled its lines for new Model Y production, it also caused a temporary supply disruption.
As a result, sales plummeted due to a lack of inventory.Tesla reportedly used up much of its inventory in December 2024 with an aggressive promotion to boost year-end earnings.
Despite Tesla's challenges, overall demand for electric vehicles in Europe continues to grow. According to the ACEA, 124,341 BEVs were sold in the EU in January 2025 and 166,065 vehicles, including the UK.
The most preferred powertrain in Europe is hybrid, with a market share of 34.9%. It is followed by gasoline (29.2%). On the other hand, diesel (8.8%) and PHEV (7.6%) share fell compared to last year, lagging behind BEV.
In the EU alone, the market share for gasoline and diesel cars fell 48.7% year-on-year to 39.4% in January 2025. Overall, new vehicle registrations in the EU fell 2.6% to 831,201 units. This is due to a decrease in sales in major markets such as France (-6.2%), Italy (-5.8%), and Germany (-2.8%).
Editor Kim Tae-jin, tj.kim@carguy.kr
This article was translated by Naver AI translator.
