Sales of Tesla fell in Europe to start the year, falling 59% in Germany in January, as reported by Financial Times.
And, at least for now, as the report notes, the trend appears to be following suit throughout the rest of Europe.
In January, Tesla's new car registrations in Germany plunged 59.5% to 1,277, despite hosting its sole European factory. Sales also fell sharply in France (down 63%), Norway (38%), and the UK (8%) year-over-year, FT writes.
EV sales "slowed sharply in Germany and France" last year after subsidy cuts but have recently started to rebound. Despite this, Tesla’s January sales fell, dropping its German market share from 14% to 4%, even as the overall EV market grew over 50%.
Analysts cite anticipation for the updated Model Y in 2025 and backlash against Elon Musk’s political activities as possible reasons for the dropoff. Schmidt Automotive Research told the New York Times that buyers in Germany could be "reacting to Musk’s comments” about politics in Europe.
In California, Tesla’s largest U.S. market, new registrations also fell 11.6% in 2024, despite overall EV sales rising 1.2%, per the California New Car Dealers Association and NYT.
Days ago, Tesla reported a softer expected Q4 2024, but Tesla stock has mostly held up in the interim. At the time, reactions were mixed, with some bearish:
“It’s clear that the market was looking for better profitability and better guidance,” said Seth Goldstein of Morningstar. “We heard on the last earnings call 20% to 30% growth, and now it’s just ‘return to growth.’ People want more firm guidance: What is the plan, and how are you going to get there?”
...and others bullish:
Cathie Wood said she thinks the stock reversal was fueled, in part, by the idea that Tesla will be scaling the Cybercab in 2026 and that production has to start this year. “We can see Tesla get down to a $15,000 car,” she said on a livestream on X spaces, noting a five-year time horizon. “This is nothing a traditional auto analyst can relate to.”
Recall, we reported late last year when CEO Elon Musk penned a supportive op-ed for Germany's AfD party in the country’s Welt am Sonntag newspaper... prompting the resignation of the paper's editor.
