According to a Bloomberg report on Wednesday, Tesla experienced a dramatic 59% drop in German sales last month.
The German Federal Motor Transport Authority (KBA) revealed that Tesla registered only 1,277 new vehicles in January, its lowest monthly performance since July 2021.
Industry analysts speculate that Elon Musk’s public support for the far-right Alternative for Germany (AfD) party may have negatively impacted consumer demand. Musk’s endorsement of AfD leader Alice Weidel, who opposes UK Labour Party leader Keir Starmer, has raised eyebrows in the automotive world.
Tesla’s position in the European market is weakening. The company also saw sales declines in the UK and France, signaling a downward trend across Europe’s three largest EV markets. Tesla’s January sales dropped 12% in the UK and 63% in France compared to the previous year.
Sources indicate that the sales slump is not solely due to Musk’s political stance. Recent production disruptions at Tesla’s assembly plant, as it transitioned to produce the updated Model Y Juniper, contributed to the downturn. The automaker may also face inventory shortages in some markets following an aggressive sales push at the end of last year.
Musk’s political views appear to have an impact beyond Europe. Last year, Tesla’s sales declined in California, with Model 3 annual sales plummeting by 36%.
