Tesla sales plunge in France as European decline accelerates

Tesla Inc. saw a sharp drop in vehicle registrations in France last month, with numbers plummeting 63% year-over-year, highlighting the company’s ongoing struggles in the European market.

According to French industry association La Plateforme Automobile, Tesla registered only 1,141 vehicles in January, down from 3,118 in the same period last year. This decline far outpaced the broader industry’s contraction, with total electric vehicle (EV) sales down just 0.5% and overall automotive registrations falling 6.2%, Caliber.Az reports via foreing media.

The slump in France comes amid a wider downturn for Tesla across the European Union. In 2023, the automaker’s registrations across EU countries fell by 13%, with Germany—Tesla’s largest European market—accounting for a significant portion of the decline. Registrations in Germany plunged 41% last year, significantly outpacing the 27% drop in overall EV sales in the country.

Tesla’s challenges in Europe stem from multiple factors, including an aging vehicle lineup, intensifying competition from European and Chinese automakers, and the phaseout of government subsidies. Germany’s decision to withdraw EV incentives in late 2023 particularly hit demand for Tesla’s vehicles.

Meanwhile, Tesla CEO Elon Musk has drawn increasing attention for his political interventions in Europe. In recent months, he has voiced support for the far-right Alternative for Germany (AfD) party and publicly clashed with UK Prime Minister Keir Starmer and his Labour government. While it remains uncertain to what extent Musk’s political stance has influenced consumer sentiment, the timing of Tesla’s sales decline has raised questions about potential reputational risks.

By Vugar Khalilov