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Recent data reveals a troubling trend for Tesla, as sales in Europe have experienced a dramatic downturn. According to the latest figures released by the European Automobile Manufacturers Association (ACEA), the number of new Tesla registrations in the first two months of 2025 plummeted by nearly 50% compared to the previous year.
In January and February, there was a reported decrease of 49% in Tesla's new vehicle registrations, resulting in approximately 19,046 cars sold and a market share of just 1.1%. This sharp decline is part of a broader trend affecting the company's performance across the continent.
In Germany, the situation is even more pronounced. Data from the Federal Motor Transport Authority (Kraftfahrt-Bundesamt) indicates that Tesla's new registrations fell by 76% in February compared to the same month last year. This decline followed a 59% drop in January, while overall electric vehicle registrations in Germany continued to rise.
The impact of these figures is particularly concerning given Tesla's significant investment in a manufacturing facility located in Grünheide, Brandenburg. The factory was established to enhance production capabilities and meet the growing demand for electric vehicles, but the current sales figures raise questions about the effectiveness of this strategy.
Moreover, the decline in Tesla's popularity appears to be influenced by various factors, including changing consumer preferences and growing competition within the electric vehicle market. Reports suggest that some companies in Germany have opted to withdraw from partnerships with Tesla due to concerns over the company's leadership and associations with controversial figures.
This sentiment has manifested in distinct actions, such as the withdrawal of several retailers, including the drugstore chain Rossmann, from utilizing Tesla vehicles as corporate fleet options. Additionally, a notable segment of Tesla owners have taken to using decals to express their disapproval of Elon Musk's public persona, further highlighting the disconnect between the brand and certain consumer groups.
Vandalism against Tesla vehicles has also reportedly increased, as illustrated by incidents such as a recent act of vandalism in Lyon, France, where a Tesla was spray-painted with derogatory slogans. Protests have emerged in various locations, including a demonstration outside a Tesla showroom in Providence, Rhode Island, where individuals voiced their dissatisfaction with Musk's leadership style and corporate policies.
As these developments unfold, the question remains whether Tesla can recover from this significant sales drop and regain its foothold in the competitive European electric vehicle market. The company will likely need to address the underlying issues contributing to its declining sales and work to restore consumer confidence.
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