Tesla’s German EV Sales Drop Sharply in October 2025

Tesla sold just 750 electric vehicles (EVs) in Germany in October 2025, a significant drop from 1,607 EVs sold the same month last year, according to data from the Federal Transport Authority (KBA). Year-to-date, Tesla’s EV sales totalled 15,595 units, representing a 50% decline this year, despite overall EV sales rising nearly 40%, with 434,627 new battery electric vehicles registered nationally.

Tesla‘s manufacturing plant in Brandenburg, near Berlin, underscores its presence in Germany, yet the brand faces mixed perceptions there. Elon Musk’s outspoken political rhetoric and support for the extremist, anti-immigrant AfD party have negatively influenced some consumers’ interest, especially among left-leaning buyers. Additionally, Tesla faces stiff competition from many European and Chinese automakers offering smaller, more affordable EVs, many priced below 35,000 euros.

In October, Tesla introduced a lower-cost Model Y SUV in Germany, priced at 39,990 euros, about 5,000 euros less than previous versions. It remains uncertain whether this new, more affordable model will stimulate demand in Germany or across Europe.

Policy changes could also impact future EV sales. Germany removed incentives for fully electric vehicles approximately two years ago, causing a sharp decline initially. However, the country plans to reinstate a new EV incentive program starting January 2026, aimed at facilitating adoption among lower- and middle-income buyers.

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While Tesla’s sales have dipped substantially this year amid political and economic challenges, upcoming policy adjustments and product shifts could influence the market’s trajectory in Germany and Europe.