Tesla registrations drop 63% in France amid rising competition in EU

By Craig Trudell

 

Tesla Inc. registrations plummeted 63% last month in France, the European Union’s second-biggest market for battery-electric vehicles. 

The manufacturer registered only 1,141 cars in January, the fewest since August 2022, according to French industry association La Plateforme Automobile. Tesla underperformed the overall industry and total EV sales, which dipped 6.2% and 0.5%, respectively.

 

Tesla Chief Executive Officer Elon Musk has inserted himself in European politics to an unprecedented degree in recent months, throwing his support behind the far-right Alternative for Germany party and taking on UK Prime Minister Keir Starmer and his Labour government. It’s unclear to what degree that’s starting to take a toll on demand for Tesla cars in the region.

 

Tesla registrations across EU countries fell 13% last year, with Germany accounting for much of the decline. The EV maker has struggled in the country due to an aging model lineup, increasing competition and the withdrawal of government subsidies in late 2023.

 

Tesla’s sales plummeted 41% last year in Germany, while overall battery-electric vehicle sales declined 27%. The Federal Motor Transport Authority is scheduled to report January results on Wednesday.

 

Rival automakers are counting on Tesla for help complying with the EU’s increasingly stringent emissions standards this year. The US company will pool the fleet of EVs it sells this year with at least five other manufacturers, led by Toyota Motor Corp., Stellantis NV and Ford Motor Co.

 

French government ministers late last month called for the European Commission to immediately suspend the regulation on CO2 emissions from passenger cars, warning that it could result in billions of euros going to Chinese manufacturers and Tesla, “whose CEO Elon Musk is openly attacking European regulations and values.”