According to the German road traffic agency KBA, Tesla experienced a 42.5% drop in sales in Germany during March. While Tesla sold 2,229 vehicles in March, marking a significant decrease from the previous year, the sales of electric cars overall saw an uptick.

In the first quarter of 2025, Tesla sold 4,935 units in Germany, reflecting a 62.2% decline compared to the same period in the previous year. Concurrently, there was a 35.3% rise in the total number of newly registered electric vehicles in March, as confirmed by KBA.

Tesla reported a 13% decline in quarterly sales, the lowest in almost three years, attributed to intensified global competition, backlash against CEO Elon Musk's political involvement, and customer anticipation for updates to its popular Model Y.

German Economy Minister Robert Habeck remarked on Thursday that the brand's reputation had suffered a setback, suggesting a window of opportunity for the German automotive industry to capitalize on the waning interest in Tesla. Habeck implied that innovative and robust vehicle offerings could fill the current gap in the market left by Tesla's declining appeal.