Problems with demand for Teslas in Europe: What's behind the drop in sales?

Tesla, an electric car manufacturer known for its innovation, is struggling with demand problems in the European market. In January 2025, there was a significant drop in registrations of their vehicles, raising questions about the causes of this trend. In addition to strong competition, speculation is beginning to emerge about the impact of CEO Elon Musk's political activities on the company's image. What are the main factors affecting Tesla's sales in Europe?

In January 2025, Tesla's $TSLAsales in Europe fell by a robust 45%, with only 9,945 Tesla-branded EVs registered, down from 18,161 vehicles in January 2024. This decline is particularly alarming given that overall EV sales in Europe are up 37.3%. While demand for EVs in general is growing, Tesla remains on the sidelines.

Among the key reasons are new models from competitors such as Volkswagen, Renault and Chinese brands such as BYD and Geely, which are bringing competitive EVs to the market. Germany, the UK and the Netherlands…