In January, registrations of new Tesla cars in Europe fell sharply. At the same time, Chinese electric vehicle manufacturers recorded a huge increase in orders. Thus, it is not a question of abandoning electric vehicles as such, but of abandoning Tesla products.
The German vehicle registration authority reported that sales of Musk’s electric vehicle brand fell by almost 60% in January compared to the same period last year. The French automotive industry recorded a 63% drop in registrations over the same period. In the UK, things were a little better, although registrations still fell by almost 8%.
Similar figures are observed across Europe: Tesla registrations in the Netherlands, Sweden, Denmark, and Norway fell by more than 40%, while Spain saw the largest drop of 75%.
Despite Tesla’s decline in the UK, France, and Germany, sales of battery electric vehicles (BEVs) in these countries are growing. The UK reported a 41% year-on-year increase in BEV registrations in January 2025, while Germany, despite a general drop in car sales, recorded a 53.5% increase in BEV purchases. Meanwhile, the French car market saw a significant drop in sales overall, but the share of BEV purchases in total car sales increased in January year-on-year.
One could blame the decline on the British and European dislike of Tesla CEO Elon Musk, who has recently spent a lot of time supporting right-wing movements in Europe. However, the above data relates to new vehicle registrations, not consumer sentiment.
Why Tesla sales are falling
And the registration data offers another explanation for Tesla’s sales decline, in the form of strong growth of competing electric car brands. In the UK, Chinese electric vehicle manufacturer BYD recorded a 550% year-on-year increase in registrations to 1,614 vehicles, and in Germany, a 69% increase. Polestar, a brand jointly owned by Chinese companies and Sweden’s Volvo, recorded a 216% increase in the UK and 113% in Germany, but sold small numbers compared to Tesla.
BYD electric cars are cheaper than Tesla in many markets. And Polestar’s are very chic.
Another reason is that Tesla hasn’t released new models for several years, except for its somewhat strange Cybertruck. An updated version of its best-selling Model Y recently went on sale, but it’s unclear when it will be available.
Tesla’s sales problem is not limited to Europe. California, the largest electric car market in America, attributed the overall drop in car sales in the state last year solely to Elon Musk’s car company.
«All of the decline in the state’s market last year was due to Tesla, which had an 11.6 percent drop», the California New Car Dealers Association said. «Registrations for all other brands were up 1.4 percent».
All this has a negative impact on Tesla’s business. The company’s latest financial report showed an 8% decline in car sales revenue, and profits fell by 70%. And the reason for this is precisely Tesla’s actions (or inaction), not the market’s skepticism about electric vehicles.
Source: theregister
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