Tesla is grappling with a significant downturn in the German market, with registrations falling to just 1,429 vehicles in February 2025—a dramatic 76% drop compared to the same month last year.
This sharp fall is especially striking given that Germany’s overall electric vehicle (EV) sector recorded a 30.8% increase in sales during the same period.
The stark contrast suggests that Tesla’s struggles are not simply a reflection of broader industry trends.
Analysts point to a combination of brand perception challenges and external controversies, notably involving CEO Elon Musk, as contributing factors. The decline raises questions about Tesla’s ability to maintain its position in Europe’s largest automotive market, especially as local manufacturers expand their EV offerings.
Political Endorsements Stir Consumer Sentiment
The downturn in Tesla’s German sales coincides with Elon Musk’s public endorsement of Germany’s far-right party Alternative for Germany (AfD).
In December 2024, Musk publicly declared that “only AfD can save Germany”, a statement that ignited strong reactions across Germany’s political landscape and wider society according to a T-Online report.
German consumer sentiment towards Tesla appears to have been heavily influenced by this political stance.
A recent T-Online survey found that 94% of respondents have no intention of purchasing a Tesla vehicle. Such a strong rejection highlights the potential repercussions of Musk’s personal views on the company’s brand perception in Germany.
While Tesla has long been seen as a leader in the EV industry, these findings suggest that Musk’s public statements may be alienating a substantial segment of German consumers.
Global Sales Struggles Add to the Pressure
The challenges Tesla faces are not confined to Germany. The company has also reported notable declines in other key markets. In China, Tesla experienced a 49% decrease in sales, while in Australia, sales fell by 65.5% during the first two months of 2025 according to Carscoops.
These global figures suggest broader concerns regarding Tesla’s growth trajectory. Analysts indicate that, in addition to increased competition and market dynamics, Musk’s political involvement could be affecting consumer perception worldwide.
For a brand that has long cultivated an image of innovation and sustainability, growing skepticism about its leadership could prove damaging to its international standing.
Escalating Backlash and Public Response
The backlash against Tesla has not been limited to declining sales. In Berlin, multiple Tesla vehicles were set on fire, raising concerns about the increasing severity of opposition towards the brand. Authorities are actively investigating these incidents and are considering potential political motivations behind the attacks as reported by T-Online.
Meanwhile, Musk has received public support from political allies abroad. In the United States, former President Donald Trump defended Musk, labeling the boycotts against Tesla as “illegal” and declaring his intention to purchase a Tesla vehicle as a show of solidarity.
These contrasting reactions underscore the polarizing effect of Musk’s political activities. While endorsements from influential figures may bolster support among certain demographics, they risk deepening opposition in more politically diverse or progressive markets.
Brand Perception and Future Uncertainty
Amid escalating controversy, concerns are mounting over the long-term implications for Tesla’s brand image. Musk’s political affiliations have sparked debate about whether the company is becoming too closely identified with his personal beliefs.
Industry analysts have warned that this perceived entanglement could erode Tesla’s mainstream appeal, especially in markets where political neutrality is valued.
There is growing consensus among market observers that Tesla must recalibrate its public relations strategy if it hopes to regain lost ground. Emphasizing its leadership in technological innovation and reaffirming its commitment to sustainability could be critical steps in rebuilding trust among disillusioned consumers.
For now, Tesla’s future in Germany—and potentially other key global markets—remains uncertain. The company’s ability to distance its brand identity from Musk’s controversial statements may well determine its prospects for recovery and long-term growth.
