Companies
February 3, 2025
Border
Less than
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Tesla Sales Plummet 63% in France Amid Industry Challenges

Tesla’s vehicle registrations in France, the EU’s second-largest electric vehicle (EV) market, plunged 63% in January, marking the lowest sales since August 2022. The company’s performance sharply contrasts with the overall industry decline of 6.2% and a 0.5% dip in total EV sales, raising concerns about its market position in Europe. Tesla has struggled with increased competition, an aging model lineup, and the withdrawal of government subsidies.
Tesla Sales Plummet 63% in France Amid Industry Challenges
Vlad Tchompalov - Unsplash

Tesla’s sales in France have suffered a dramatic decline, with only 1,141 new registrations in January, a 63% drop compared to the previous year. The decline, reported by French industry association La Plateforme Automobile, underscores Tesla’s growing challenges in Europe’s competitive EV market.

While overall vehicle sales in France fell 6.2% and total EV sales dipped 0.5%, Tesla’s performance was significantly worse. The company’s struggles in Germany, the EU’s largest EV market, have also contributed to broader concerns about its European market share.

Tesla’s registrations across the EU fell 13% in 2024, with Germany accounting for much of the decline. In Germany, Tesla sales plummeted 41% last year, as the overall battery-electric vehicle segment shrank 27% following the withdrawal of government subsidies in late 2023.

Tesla CEO Elon Musk has been increasingly involved in European politics, backing the far-right Alternative for Germany (AfD) party and clashing with UK Prime Minister Keir Starmer. While it remains unclear whether this is affecting consumer demand, Tesla’s brand image in Europe appears to be under pressure.

At the same time, the French government has raised concerns about European subsidies benefiting Tesla and Chinese EV manufacturers. French ministers recently urged the European Commission to suspend CO2 emissions regulations, warning that they could direct billions of euros to foreign automakers, including Tesla.

Despite its declining sales, Tesla remains a key player in helping rival automakers meet EU emissions targets. The company will pool its EV fleet with Toyota, Stellantis, and Ford to help these manufacturers comply with increasingly strict emissions standards.

Tesla’s European market performance will remain under scrutiny, with the German Federal Motor Transport Authority set to release January sales data in the coming days. As the company faces fierce competition, policy challenges, and potential political backlash, its strategy for regaining momentum in the European market remains uncertain.

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