Tesla Germany experienced a decline in sales in the first quarter of 2025, with a total of 4,935 units sold. This decrease comes amidst a growing market for electric vehicles in Germany. The German road traffic agency KBA reported that Tesla’s sales in March dropped by 42.5% compared to the previous year, with first-quarter figures plummeting by 62.2% from 2024. In contrast, there was a 35.3% increase in newly registered electric vehicles in March, indicating a shifting trend in the market.
According to Tesla’s Q1 2025 report, the company delivered a total of 336,681 vehicles globally, a slight decrease from the previous year. This decline was attributed to increased competition, factory retooling for the refreshed Model Y, and backlash related to CEO Elon Musk’s political actions. German Economy Minister Robert Habeck commented on the situation, suggesting that the decline in Tesla’s sales could be an opportunity for the automotive industry in Germany.
Despite the drop in sales in Germany, it is believed that the decrease may be more related to shifts in Model Y production rather than perceptions of Musk or the Tesla brand. In China, Tesla experienced a significant increase in sales, with a 156.87% jump in March compared to February. The company sold 78,828 units in China in March, with the introduction of the new Model Y contributing to this growth.
On a global scale, Tesla produced 362,615 vehicles in Q1, with a focus on Model 3 and Model Y units. Production was impacted by upgrades to the Model Y line at factories in Texas, Fremont, Shanghai, and Berlin. Despite these challenges, Tesla remains optimistic about the future, noting that production of the Model Y refresh is scaling up.
In conclusion, while Tesla may face some obstacles in the near future, the company has a strong foundation for long-term success. The company’s focus on electric vehicles and innovation positions it well for continued growth and stability in the market.