Tesla's sales in Germany have plummeted to a quarter of last year's figures, according to data from the German Federal Motor Transport Authority (KBA). In February, new Tesla registrations in Germany fell by a staggering 76.3% year-over-year, dropping to just 1,429 units. This sharp decline has significantly reduced Tesla's market share from 2.8% to 0.7%.
Conversely, competitors like BYD and Polestar have seen substantial growth in their German sales. BYD registrations surged by 96.8%, while Polestar experienced a 60.4% increase. The overall German electric vehicle (EV) market continues to expand, with a 30.8% rise in new EV registrations compared to the previous year.
Tesla's sales slump is largely attributed to the growing negative perception of CEO Elon Musk, particularly concerning his political affiliations. Musk's close ties to Donald Trump and his vocal support for right-wing political parties in Europe have sparked controversy and alienated potential buyers. Concerns over political interference have damaged Tesla's brand image in the region.
The decline in sales extends beyond Germany. Tesla's European registrations fell by 45% in January, with Germany experiencing an even sharper drop of 59.5%. Additionally, Tesla's China factory shipments for February plummeted by 49.2% year-over-year, reaching their lowest point since August 2022.
Tesla's struggles highlight the potential impact of CEO's political stances on a company's performance, particularly in markets with strong political sensitivities.
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