Tesla Germany experienced a decline in sales in Q1 2025, selling 4,935 units, which was a significant drop compared to the previous year. The German road traffic agency KBA reported that Tesla’s March sales in Germany decreased by 42.5% to 2,229 units year-over-year, with first-quarter figures plummeting by 62.2% from 2024. This decline in sales came at a time when there was a 35.3% increase in newly registered electric vehicles in the market, indicating a contrasting trend.
Despite the decrease in sales in Germany, Tesla’s global quarterly deliveries in Q1 2025 were 336,681 vehicles, a slight dip compared to the previous year. Factors contributing to this decline were cited as stiffer competition, factory retooling for the refreshed Model Y, and backlash associated with CEO Elon Musk’s political actions. German Economy Minister Robert Habeck commented on the situation, suggesting that the decline in Tesla’s popularity could present an opportunity for the automotive industry in Germany.
It is important to note that the drop in Tesla Germany’s sales in Q1 2025 may be more connected to shifts in Model Y production rather than perceptions of Musk or the brand. On a more positive note, Tesla experienced a significant increase in sales in China, 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.
Globally, Tesla produced 362,615 vehicles in Q1, with a focus on Model 3 and Model Y units. However, production was impacted by upgrades to the Model Y line at factories in Texas, Fremont, Shanghai, and Berlin. Despite these challenges, Tesla highlighted in its Q1 delivery report that production of the Model Y refresh is scaling up, indicating a positive outlook for the company in the long term.
Overall, while Tesla faced some setbacks in Q1 2025, particularly in the German market, the company’s global performance and production capabilities remain strong, setting the stage for continued growth and success in the future.