Tesla sales in Germany have cratered from last year, data shows

In a significant downturn, Tesla's sales in Germany have sharply declined, with only 750 electric vehicles sold in October 2025. This figure represents less than half of the 1,607 units sold in the same month last year, according to data released by Germany's federal transport authority, KBA. Year-to-date statistics reveal that Tesla has sold 15,595 EVs in Germany, marking a staggering 50% drop compared to the previous year, despite the overall market for battery electric vehicles growing nearly 40% with 434,627 new units registered. Tesla's challenges in the German market are exacerbated by the presence of increasing competition from European and Chinese manufacturers offering smaller, more affordable electric vehicles, many priced under 35,000 euros. Additionally, the company's reputation has been affected by Elon Musk's controversial political statements and his support for the far-right AfD party, which has alienated many potential left-leaning customers. In response to this downturn, Tesla has introduced a new, lower-cost variant of its Model Y SUV in Germany, priced at 39,990 euros—approximately 5,000 euros less than previous models. However, it remains uncertain whether this strategic move will effectively boost demand in the competitive landscape of the German EV market. Looking ahead, changes in policy may provide a much-needed boost to EV sales across Germany. The country is set to launch a new incentive program for electric vehicle purchases starting in January 2026, aimed at assisting lower- and middle-income buyers in transitioning to zero-emission vehicles. This initiative follows a previous scrapping of incentives that had initially led to a significant decline in demand for fully electric vehicles.