Tesla sales crash in Europe, dropping 45% in Jan as EV competition heats up

Billionaire Elon Musk's increasing involvement in US politics and controversial stance on European leaders may have also attributed to the fall in Tesla sales

Elon Musk-owned Tesla has witnessed a sharp drop in sales across European markets, with registrations plunging 45 per cent in January compared to the same period last year. The decline comes at a time when the broader electric vehicle (EV) market in Europe is booming, growing by 37 per cent last month, driven by strong performances from rival car manufacturers in Germany and the UK, CNBC-TV18 reported on Tuesday.

 

According to the European Automobile Manufacturers’ Association, Tesla sales registered only 9,945 units in January, a sharp decline from 18,161 units in the previous year. The company faced a particularly tough market in Germany, where it registered just 1,277 new vehicles, the lowest figure since July 2021. In France, sales plummeted by 63 per cent, marking Tesla’s worst performance there since August 2022.

 

 

Meanwhile, in the UK, Tesla’s sales fell by nearly 8 per cent in a market that saw EV sales surge by 42 per cent. For the first time, the company was outpaced by Chinese automaker BYD in UK registrations.

 

EV competition heats in Europe

Tesla’s declining performance in Europe comes amid increasing competition from legacy automakers such as Volkswagen, Stellantis, and Renault, which are under increasing regulatory pressure to expand their EV offerings. In 2025, European car manufacturers will have to comply with stricter carbon emissions targets in the EU and meet progressively higher zero-emission sales quotas in the UK, which could further intensify the competitive landscape for Tesla.

 

Elon Musk's controversial political stance

Beyond production challenges, Tesla’s recent sales slump has also been linked to its CEO Elon Musk’s increasingly controversial political involvement. Musk, who has emerged as a vocal supporter of US President Donald Trump, has extended his political activism to Europe, backing far-right parties and openly criticising incumbent leaders in the UK and Germany.

 

His engagement has included a live discussion on his social media platform X with Alice Weidel, the leader of the Alternative for Germany (AfD) party, a group known for its anti-immigration stance.

 

In the UK, Musk called for the imprisonment of Prime Minister Keir Starmer while advocating for the release of jailed far-right activists. His remarks have fuelled concerns among European consumers and policymakers, with recent YouGov polls indicating that Musk’s favourability in Germany and the UK has declined. Many respondents expressed disapproval of his political interventions.

 

Tesla turns to India after Modi-Trump meet

Meanwhile, CEP Musk has once again shown interest in expanding into the Indian market. Musk recently met with Indian Prime Minister Narendra Modi during his visit to Washington, reigniting speculation about Tesla’s long-awaited entry into India. The company has posted job listings for various roles in Mumbai, with some descriptions referencing work in New Delhi as well. Reports suggest that Tesla may establish showrooms in India and has approached executives at Tata Motors for a potential collaboration. Additionally, Tesla is expected to import vehicles from its German factory rather than China, in line with concerns raised by the Indian government over sourcing from the Chinese market.