What happens when a leading car company suddenly loses more than one-third of its customers in a major market? This is exactly what happened to Tesla in Germany during May 2025, according to data from Investing and the German road traffic agency KBA.
The Surprising Numbers Behind Tesla’s German Struggle
Tesla’s sales crashed dramatically in Germany, dropping by 36.2% compared to the same month last year. This means Tesla sold only 1,210 cars in May, which is a huge decrease from their previous performance.
Meanwhile, something completely opposite happened in the broader German electric car market – it actually grew by 44.9% with more new car registrations.
The most striking comparison comes from looking at BYD, a Chinese electric car maker. BYD’s sales increased ninefold, which means they sold nine times more cars than before – reaching 1,857 units in the same May period.
Why Tesla Lost So Many German Customers
- Political backlash: According to Carscoops, many German customers disapprove of Elon Musk’s support for right-wing political parties, including Germany’s far-right AfD party.
- Fierce competition: EVBoosters reports that Chinese brands like BYD, NIO, and XPeng now offer high-tech electric cars with similar performance to Tesla but at much lower prices.
- Lack of innovation: XTB notes that Tesla only made minor updates to their Model 3 and Model Y cars, causing customers to switch to newer alternatives.
- Subsidy changes: EVBoosters explains that Europe ended electric car subsidies, which particularly hurt Tesla since they don’t offer cheaper car models.
This market shift shows how quickly customer preferences can change in the electric car industry. Tesla now faces the challenge of rebuilding its reputation while competing against aggressive new rivals.
