The German government says the slump in Tesla sales in its country, at least partly inspired by CEO Elon Musk’s politics and his support of far-right parties, has presented opportunities for its own car makers.
German Economy Minister Robert Habeck said in a press conference on Thursday that the brand had suffered.
“The perception is that the passion for Tesla has suffered greatly in recent weeks and months, which is perhaps a good opportunity for the automotive industry in Germany,” economy minister Robert Habeck said on Thursday.
“So unexpectedly, there is also a gap in the market if they bring good, powerful cars to market.”
Habeck was speaking after the release of official data that showed Tesla sales slumped 42 per cent in the month of March to just 2,229 cars. The number of Teslas sold in the first quarter to the end of March dropped 62.2 per cent to 4,935 units, compared with the same period last year, and came despite a 35.3 per cent jump in EV sales overall.
Tesla has built a Gigafactory in Berlin, but Musk’s controversial interventions into German politics in favour of the AdF have sparked a consumer backlash, including from large companies. At least three – energy supplier Badenova, house construction company Viebrock, and drugstore chain Rossmann – have said they will no longer buy Tesla EVs.
The results in Germany reflect the state of the market across Europe, where Tesla sales have slumped dramatically, in part to a retooling for the refreshed Model Y, in part because of increased competition, and in part because of the consumer backlash to Musk.
The one bright spot in Europe had been the UK, but Tesla sales dropped 0.6 per cent in March to 7,220, and its market share slumped to 10.7 per cent as the UK posted a record month of EV sales of 68,255, a rise of 35 per cent.
“Tesla remains the top brand, but sales fell by 1% in a steeply rising market,” New Automotive reported. “Big risers include Peugeot (up 106% on January-March 2024), Skoda (up 127%) and Volkswagen (222%).
“Meanwhile BYD saw sales surge 354% on the same period, and joins the BEV top 10 for the first time, And just outside the top 10, ZEV mandate bellyachers Ford saw a rise of 311%.”
Giles Parkinson is founder and editor of The Driven, and also edits and founded the Renew Economy and One Step Off The Grid web sites. He has been a journalist for nearly 40 years, is a former business and deputy editor of the Australian Financial Review, and owns a Tesla Model 3.