Tesla’s tough streak in Europe just got a little worse. The automaker sold only 750 cars in Germany in October 2025, less than half the 1,607 it sold during the same month last year, according to data from Germany’s federal transport authority, the KBA.
What makes the slump sting even more is that the rest of Germany’s electric vehicle market is booming. KBA data shows nearly 435,000 new fully electric cars registered so far this year, up around 40% from the same period in 2024. Tesla’s share of that surge, though, has been shrinking fast. With just 15,595 deliveries recorded, the company’s sales in Germany have dropped about 50% year over year.
This decline comes despite Tesla’s local advantage: it operates a massive manufacturing facility just outside Berlin. The plant in Brandenburg was meant to give the company a stronger foothold in Europe’s biggest car market, but that hasn’t translated into loyalty among German buyers.
Part of Tesla’s problem might be cultural. Elon Musk’s increasingly political online presence and his public endorsement of the far-right AfD party have alienated Germany’s left-leaning consumers, who dominate the EV market. Some German analysts have even suggested that Musk’s social media behavior has damaged the brand’s reputation more than its pricing or reliability issues.
Competition isn’t helping either. A wave of new, affordable electric cars from European and Chinese automakers has flooded the market. Companies like BYD, Renault, and Volkswagen are offering compact EVs for under 35,000 euros—well below the price of Tesla’s most popular models.
Tesla did try to fight back in October with a new, cheaper version of the Model Y, priced at 39,990 euros, roughly 5,000 euros less than the previous base model. While that’s a step in the right direction, it’s still significantly more expensive than many rivals offering comparable range and tech features. Whether this lower-cost variant will reverse the trend remains unclear.
Policy changes could also shake things up again. Germany scrapped its EV subsidies two years ago, leading to a brief demand collapse. But a new incentive program set to roll out in January 2026 aims to help lower- and middle-income drivers afford electric cars. That might boost overall sales, but there’s no guarantee it will help Tesla more than its competitors.
For now, Tesla’s German operations are caught in an awkward spot: manufacturing locally but losing local love. With rivals gaining ground and public sentiment shifting, Musk’s company may need more than a price cut—or a tweet—to regain its spark in Europe.