In 2024, German Tesla sales have plummeted by 41%, with electric car sales seeing a decrease of 27% overall.
In 2024, Tesla maintained its position as the largest manufacturer of pure electric vehicles globally, yet the company experienced a consecutive decline in sales in Germany. This downturn contrasted sharply with the overall growth of the German electric vehicle (EV) market, which saw an 8.6% rise in EV registrations during the same period.
The key reasons for Tesla's sales decline in Germany include intensified competition, particularly from Chinese automaker BYD. BYD's sales in Germany surged significantly, tripling in June 2025 and nearly quintupling for the first half of the year. Competitors like BYD offer newer, more affordable EV models with updated features, putting pressure on Tesla's relatively older Model 3 and Model Y lineups.
Production disruptions such as retooling at Tesla's Berlin factory for a refreshed Model Y also impacted supply and availability. Furthermore, brand and reputational challenges, with controversies linked to CEO Elon Musk alienating some European customers, have damaged Tesla’s brand perception. Regulatory and economic headwinds, including subsidy cuts in Germany for electric vehicles, inflation-driven cost of living pressures affecting consumer spending, and slower-than-targeted growth in charging infrastructure, have further complicated the situation.
While Tesla’s sales and market share have decreased significantly in Europe, the overall European EV market registrations rose about 24% during the same period, fueled by many new models from local and Chinese manufacturers. In comparison to the global electric vehicle market, Tesla’s decline in Germany and Europe contrasts with the broader global trend of EV growth.
Despite the challenges in Europe, Tesla's global performance has not been significantly affected. In 2024, all electric vehicle manufacturers together experienced a significant decrease, with Tesla selling fewer vehicles globally than in the previous year, albeit by a relatively small margin. On the other hand, BYD experienced a larger growth in electric vehicle sales compared to Tesla, selling more electric vehicles than Tesla in Q4 of 2024 and being about 100,000 units ahead of Tesla in electric vehicle sales for the entire year.
In summary, Tesla's consecutive sales declines in Germany reflect a combination of stronger local and Chinese competition, supply chain and product refresh challenges, and brand perceptions, even as the broader German and European EV markets continue growing. This situation highlights a regional shift in consumer preference and market dynamics that has not yet broadly affected Tesla’s global performance but signals increased challenges in Europe for the company.
References:
[1] Electrek (2025). Tesla's sales in Germany continue to decline despite a growing European EV market. [online] Available at: https://electrek.co/2025/07/01/teslas-sales-in-germany-continue-to-decline-despite-a-growing-european-ev-market/
[2] CNBC (2025). Tesla's sales in Germany plummet as BYD surges. [online] Available at: https://www.cnbc.com/2025/07/02/teslas-sales-in-germany-plummet-as-byd-surges.html
[3] Reuters (2025). Tesla's European sales decline as it faces tough competition and regulatory challenges. [online] Available at: https://www.reuters.com/business/autos-transportation/teslas-european-sales-decline-faces-tough-competition-regulatory-challenges-2025-07-03/
[4] Statista (2025). Tesla's sales in Germany shrink dramatically in 2024. [online] Available at: https://www.statista.com/statistics/1287540/tesla-sales-in-germany/
- The energy sector in Germany saw a surge in competition, particularly in the electric vehicle (EV) industry, with Chinese automaker BYD's sales significantly increasing, threatening Tesla's market share.
- In the realm of finance, Tesla faced a decrease in sales in Germany, contrasting with the overall growth of the German EV market, while competitors like BYD benefited from offering newer, affordable EV models with updated features.
- The technology sector witnessed a shift in consumer preference, as regional market dynamics favored local and Chinese manufacturers, impacting Tesla's sports-related segment, namely the automotive industry.
