Germany Deals Tesla Brutal Blow As Q1 Sales Crash 62%

• Tesla sales fell by 43% in March, following even greater declines in February and March.
• Germany's Economy Minister thinks that this might be an opportunity for local brands.

Tesla's grip on the German market is slipping—and fast. In the first quarter of 2025, the automaker logged just 4,935 new vehicle registrations in Germany, marking a staggering 62% drop compared to the same period last year. This slump comes even as the German EV market overall grew by 39%, leaving plenty of space for other manufacturers to step in and take advantage.

More: Tesla Sales Plunge Across Europe Despite Model Y Juniper Launch

According to figures from the German Federal Motor Transport Authority, Tesla's slide has been consistent and brutal. March 2025 saw a 43% decline in sales, following a jaw-dropping 76.3% crash in February and a 59.5% drop in January. In sharp contrast, the broader German EV market rose by 35.5% in March alone, with battery electric vehicles making up 17% of all new registrations.

One factor in Tesla's recent slump is the production shift required to launch the redesigned Model Y Juniper. Adjustments to the Berlin Gigafactory's assembly lines hit output during January and February, contributing to the shortfall. Still, the March numbers suggest there's more going on than just a production hiccup.

Public perception of Elon Musk in Germany, or anywhere in Europe, for that matter, has taken a nosedive. His outspoken, often politically charged behavior on both sides of the Atlantic hasn't exactly endeared him to the public. That change in sentiment is now seen as a major driver behind Tesla's waning popularity, with customers seemingly less interested in the brand as Musk becomes increasingly polarizing.

Robert Habeck, Germany's outgoing Economy Minister, thinks that Tesla's collapsing sales might make room for local automakers to shine: "The perception is that the passion for Tesla has suffered greatly in recent weeks and months, which is perhaps a good opportunity for the automotive industry in Germany. So unexpectedly, there is also a gap in the market if they bring good, powerful cars to market".

More: Tesla Owners Are Selling Their Cars In Record Numbers Over Musk's Politics

The pain isn't isolated to one country. Earlier this week, Tesla reported global deliveries of 336,681 vehicles in Q1 2025, a 13% drop year over year. The company's stock hasn't fared much better, losing roughly 36% of its value since January (it's over 9% down from yesterday alone). That decline comes despite hitting an all-time high after the 2024 U.S. election.

There's speculation that things could improve if Musk steps back from his role at the U.S. government's Department of Government Efficiency , with Reuters suggesting his exit could have a calming effect on investors.

GERMANY SALES Q1