Tesla Faces 70% Sales Drop in Germany as Buyers Shift Preferences

Germany’s electric vehicle (EV) market is showcasing a remarkable resilience, with sales soaring over 35% year-over-year, now accounting for approximately 17% of new vehicle registrations.

This surge occurs despite the absence of government incentives, which were notably terminated at the end of 2023. However, the landscape is complicated by Tesla’s sharp decline in sales within the country, exposing shifts in consumer sentiment.

According to the Kraftfahrt-Bundesamt (KBA), Tesla experienced a staggering 70% drop in its sales in Germany during the first two months of the year when compared to the previous year.

EV Sales Skyrocket in Germany After Government Incentives End

Furthermore, a recent survey indicated that 94% of respondents wouldn’t consider purchasing a Tesla. This emerging trend raises questions about the brand’s long-term viability in a market where political associations have turned its electric vehicles into political statements, sometimes leading owners to opt for less polarizing alternatives.

The abrupt cancellation of subsidies worth up to €4,500 for new EV purchases has indisputably impacted sales dynamics, producing a significant downturn in new vehicle registrations for 2024 as compared to the previous year.

Buyers were pulling ahead vehicle purchases in anticipation of the subsidy expiration, a trend not typically seen in the U.S. Here, European consumers favor a more consultative approach, often customizing their orders and awaiting delivery—a process that can take three to four months.

As Tesla grapples with its reputation and sales decline, other automakers are poised to capture the market share. Will consumers continue to turn away from Tesla, or can the brand recover its standing? Only time will tell, but the current climate suggests a reconfiguration of preferences among German EV buyers.