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Tesla’s sales in Germany fell by roughly half in October 2025, dropping to 750 vehicles, even as the country’s wider battery-electric market kept expanding and rivals pushed in with cheaper models. Data from Germany’s federal motor transport authority, known by its German acronym KBA, shows Tesla sold 1,607 cars in the same month a year earlier, underscoring how far the brand has slipped in Europe’s biggest auto market.
From January through October, 434,627 new battery-electric vehicles (fully electric cars, often shortened to BEVs) were registered in Germany, amounting to about a 40% rise from a year ago.
Within that expanding market, Tesla accounted for 15,595 registrations over the period, which represents a decline of around 50% for the brand.
Tesla operates a large assembly plant near Berlin in Brandenburg, yet it has not managed to come across as a “local favorite.”
The company’s image has taken a hit among left-leaning consumers, as Elon Musk’s provocative political statements and his support for the far-right Alternative for Germany party—widely known by its German acronym AfD—have eroded interest in the marque.
Across Europe, competition has tightened as European and Chinese brands bring smaller, lower-cost EVs to market, many of them priced under €35,000 (over $40,300).
In response, Tesla rolled out a simplified, lower-cost version of the Model Y SUV in Germany during October, listing it at €39,990, around €5,000 less than the previously cheapest Model Y available in the country.
It remains unclear whether Tesla’s new, cheaper Model Y variants will lift sales in Germany or across Europe.
The company faces a market that has been reshaped by shifting incentives and fierce pricing pressure.
Germany ended its purchase subsidies for fully electric cars nearly two years ago, a move that initially knocked demand.
The government now plans to introduce a new scheme in January 2026 aimed at helping low- and middle-income buyers switch to zero-emission vehicles. Whether that will feed through to Tesla’s order books is still an open question.
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