Tesla's German Slump: Is Elon Musk to Blame for Plunging Sales?
German interest in Tesla vehicles experiences significant decline
Hop in! Buckle up! Let's dive into the tumultuous world of Tesla and Elon Musk, where politics, controversial stances, and electric vehicles intersect, echoing a rollercoaster ride.
Facebook Twitter Whatsapp E-Mail Print Copy Link If Elon Musk's interference in German politics and his controversial role as a Trump advisor is anything to go by, Tesla's fame in Deutschland seems to be fading faster than the sun setting over the Autobahn. Car buyers appear to be steering clear.
However, the falling interest might also stem from the anticipation of the revamped Model Y. The German markets are eagerly awaiting its arrival later this month. As of now, the American trailblazer in electric vehicles isn't exactly cruising through the German market. Sales stats, market shares, and intent to purchase are all trending southward.
According to recent data from the Danish market research firm Caliber, snatched by "Handelsblatt," less and less Germans are considering a Tesla for their next whip. Summertime, when Musk publicly endorsed Donald Trump, marked the start of the gradual slide in enthusiasm for Musk's electric babies.
Buckle up! Time for a spin around Economy and Brand Expert land: Early in August, Tesla was still on the radar for 31 percent of Germans. Skip a few months to January, when Trump took over the Oval Office, and that figure dropped to 16 percent. By February, it was 20 percent. Caliber CEO Shahar Silbershatz makes an interesting observation: "The correlation with Musk's behavior is as clear as a ray of sunlight."
From a Symbol of Denouement to the "Liability Factor"
Musk's robust involvement in politics, his stint as a cost-cutter for the US government, and his support for the far-right faction have sparked up a bit of a stir. "Musk has become a liability for Tesla," chuckles industry expert Stefan Bratzel when asked about his thoughts by ntv.de. "Musk's political antics are chomping away at Tesla's sales and also harming the brand's reputation."
In 2022, Tesla still reigned supreme in the German electric vehicle market. Last year, it slipped from second to third place with a market share of 9.9 percent. In the race to the bottom, no manufacturer lost as much market share as Tesla. Since then, it's been a downward spiral. In January, Tesla registrations plummeted by a whopping 60 percent year-over-year, and market share fell to a measly 3.7 percent.
As the curtain fell on December, Musk waded into German politics once more. He publicly endorsed the AfD for the first time. In January, he had a lengthy gabfest with party co-leader Alice Weidel on his platform X. A month later, sales figures slashed by three-quarters - while electric vehicles overall maintained momentum. Tesla's market share was a flabbergasting 4 percent. In the same month last year, the share of electric vehicles newly registered in Germany was still a 22 percent piece of the pie. In January 2024, it was 14 percent, and in September 2022, it peaked at 30.9 percent.
Will the Refreshed Model Y Resuscitate Tesla?
One plausible explanation for the sales debacle could be the wait for the revamped Model Y. Tesla's lost the innovation edge in recent years. Says Bratzel, "The product range's a mite old." With the revised model, industry experts expect improved sales figures. Frank Schwope also echoes this opinion, teaching automotive economics at the University of Applied Sciences in Hannover. The updated Model Y "might breathe fresh life into Tesla's sales."
Even marketing sociologist Oliver Errichiello lays the sales drop largely at Tesla's performance issues. He insists that's what matters to customers. "People buy cars, not attitudes," the marketing sociology professor at Mittweida University quipped to ntv.de. In his opinion, Tesla isn't grappling with a societal problem but a technical one. The cars' performance, has allegedly suffered for years, and promises of full self-driving have gone unfulfilled. "The brand needs to show innovation again now." According to Errichiello's estimation, Musk isn't doing lasting damage to his brand. The immediate future, however, promises a bumpy ride for the US electric vehicle manufacturer.
- Tesla Motors
- Tesla Models
- Elon Musk
- Electric Vehicles
- Automotive Market
Impact on Sales in Germany
- Sales Decline: Tesla's sales in Germany have plummeted, with a decline of over 70% in the first two months of 2025 compared to the same period in 2024.[2][3][4] This decline is dramatically opposed to the overall growth of the electric vehicle (EV) market in Germany, which saw a 41% increase in BEV registrations during January and February 2025[1].
- Market Share: Volkswagen led with 16,521 new BEV registrations in January and February 2025, while Tesla lagged behind with only 2,706 registrations[1].
Impact on Brand Image
- Public Perception: A survey by T-Online found that an astonishing 94% of Germans would not consider buying a Tesla, primarily due to Musk's political activities[2][3]. This widespread skepticism reflects a severe diminution of trust in the brand.
- Political Controversies: Musk's support for far-right parties in Germany, such as the Alternative for Germany (AfD), and his attendance at Donald Trump's inauguration, where he made a gesture perceived as a Nazi salute, stirred up the backlash[2][3][4].
- Social Media Impact: Musk's controversial social media posts, including remarks about historical figures, have further tarnished Tesla's brand image in Germany[2][3].
Overall Impact
- Global Challenges: Beyond Germany, Tesla faces obstacles in other markets, including China, where local brands such as BYD are making strides[4]. In the US, investor confidence has also dipped, with Tesla's stock price taking a dive[4].
- Recovery Efforts: Tesla is looking to the updated Model Y to revive consumer confidence, but the path to recovery appears rocky given the sizable damage inflicted on its brand image[2][3].
- The community policy for the German market should consider the impact of Elon Musk's political involvement and controversial stances on Tesla's sales and brand reputation.
- Vocational training programs could be implemented to improve Tesla's product range and regain a competitive edge in the automotive market.
- Despite the challenges, the upcoming refreshed Model Y has the potential to reverse Tesla's downward trend in sales in Germany and help the company recover its position in the electric vehicle market.
