Tesla saw a sharp drop in sales in Germany last month, with new registrations falling 59.5% year-on-year to 1,277 vehicles, data from the German road traffic agency KBA showed on Wednesday. The decline comes as the U.S. electric vehicle (EV) maker faces growing competition and public scrutiny, including controversy surrounding CEO Elon Musk’s political statements.
While Tesla’s sales declined, Germany’s overall automotive market dipped just 2.8% in January, with slightly more than 207,000 vehicles registered. Notably, the battery-electric vehicle (BEV) segment, in which Tesla competes, saw a strong surge, growing 53.5% to nearly 34,500 vehicles across all brands. KBA did not provide reasons for Tesla’s sales slump, but the figures suggest a shifting competitive landscape.
See also: Tesla to Switch to Battery-Powered Trains for Factory Shuttle Service in Germany
Tesla’s sales decline extended beyond Germany. In Sweden, new Tesla registrations fell 44% year-on-year to 405 vehicles in January, while Norway saw a 38% drop to 689 units. This contrasts with rising car demand in both Nordic countries, highlighting the company’s recent loss of market share.
Musk’s outspoken political stance has drawn criticism in Europe, including from Norway’s prime minister and Germany’s chancellor. His vocal support for former U.S. President Donald Trump, along with other polarizing remarks, has fueled debate in the region. Musk, who also owns the X social media platform, has dismissed criticism, arguing that it threatens free speech and democratic principles.
See also: Tesla Lowers EV Production Costs as It Prepares for New Model Y
Tesla’s performance in Europe will be closely watched in the coming months, as the automaker navigates both an evolving EV market and public perception challenges.