Tesla sales plunge across Europe but rise in Ireland

Elon Musk’s intervention in Germany’s upcoming federal election likely factored in the result — a poll taken in mid-January found the CEO was viewed unfavourably, and that his political interventions were unwelcome. Picture: Stephen Lam

Tesla’s sales plummeted 59% last month in Germany, adding to indications that CEO Elon Musk’s political activities are hurting the carmaker’s business in major electric vehicle markets.

However, the company's sales rose in Ireland in January, more than doubling last January's figures in what is generally a low-selling month for the company.

In Germany, the US manufacturer registered only 1,277 new cars in January, its lowest monthly total since July 2021, according to the German Federal Motor Transport Authority.

Tesla lost substantial ground in an EV market that was up 54% for the month. Musk’s intervention in Germany’s upcoming federal election likely factored in the result — a poll taken in mid-January found the CEO was viewed unfavourably, and that his political interventions were unwelcome.

Tesla also posted declines in France and the UK last month, meaning its sales fell in Europe’s three largest EV markets. In addition to vouching for Germany’s far-right Alternative for Germany party and taking on UK Prime Minister Keir Starmer, Musk spent the month cementing his position in the administration of US President Donald Trump, who’s threatened to hit the European Union with tariffs.

In Ireland, the Society of the Irish Motor Industry (SIMI) shows Tesla car sales rose last month to 143 cars compared to 66 sold in January 2023. 

The January sales figures show Tesla's position amongst electric vehicle sellers fell to 12th. However, January has been a low-selling month for the company in recent years. Despite low sales last January, Tesla went on to sell the most fully electric vehicles in Ireland last year at 2,926 giving it a 16.8% market share.

The company’s sales plunged 63% last month in France — the EU’s second-biggest EV market, after Germany — and dropped 12% in the UK. 

Other factors outside of politics are likely at play in Tesla’s slow start to the year. The company is changing over assembly plants to produce a redesigned Model Y, its best-selling vehicle, which will cost the manufacturer several weeks of lost production.

Tesla also may be contending with shortages of inventory in some markets due to the all-out push the company made to boost sales late last year.

While the automaker delivered more vehicles than ever in the fourth quarter, it fell short of a forecast for slight growth for the full year. Instead, the company posted its first annual decline in more than a decade.

But there have been more signs outside of Europe that Musk’s politics are having an effect on the carmaker he runs. Tesla registered fewer cars in California in all four quarters of 2024, as sales of its second-most important vehicle — the Model 3 — plunged 36% for the year.

California went for Trump’s opponent Kamala Harris by a wide margin in November, and Musk feuded with Governor Gavin Newsom throughout last year.

• Bloomberg and Irish Examiner