The year 2024 marked a turning point in the battery electric vehicle (BEV) market in Germany.
Following the abrupt termination of government subsidies in December 2023, new BEV registrations plummeted by 27.5% in 2024, as reported by the German Federal Motor Transport Authority (KBA).
A breakdown of the data by manufacturer highlights that Tesla was the most severely impacted brand, with a 41% decline in sales over the course of the year.
BMW achieved a growth of 4.1%, while Volkswagen experienced an even greater increase, with registrations rising by 11.6% compared to 2023.
During December, Volkswagen registered 62,108 electric vehicles, followed by BMW with 42,066 and Tesla with 37,574.
These figures illustrate a recovery in the final stretch of the year, following a particularly weak first quarter in terms of sales.
Although Elon Musk’s company led the top three rankings in the early months of 2024, it progressively lost its dominance, ultimately falling out of the ranking in 2025.
For instance, new Tesla registrations in Germany declined by 76.3% in February compared to the same month in 2024.
This sharp drop follows a 59% decrease in January.
What is the cause of this downturn?
According to local media sources, the decline is not solely attributed to market factors but is also linked to the company’s image and its CEO, Elon Musk.
They suggest that Tesla’s strong association with Musk may be affecting demand, particularly after his involvement in European politics, where he supported far-right parties in Germany and the United Kingdom.
Simultaneously, certain industry sectors argue that the downturn may also be connected to more technical and commercial reasons.
According to a specialist publication, the decline in registrations of the American brand coincides with the update of the Model Y, its best-selling model.
It is common for sales of an existing vehicle model to decrease before the launch of a new version, as many customers opt to wait for the updated edition.
This phenomenon could partially explain Tesla’s sales slump not only in Germany but also across Europe.
Despite Tesla’s total valuation still surpassing that of the nine leading car manufacturers combined, the company’s market capitalisation declined by 45% from its all-time high of 1.5 trillion dollars.
According to Reuters, this downturn has wiped out a substantial portion of the stock gains achieved after Musk’s financial contribution to the election campaign that led to the victory of U.S. President Donald Trump.
The German Federation for Motor Traits and Repairs (ZDK) informs Mobility Portal Europe:
“Last year, no other brand experienced such a pronounced decline in BEV sales as Tesla.”
“It cannot be ruled out that this is connected to certain perceptions regarding the brand’s image,” they explain.
Monthly evolution of BEV registrations in 2024
Throughout 2024, monthly BEV registrations in Germany exhibited fluctuations.
In January, Tesla led with 3,152 units, followed by Mercedes with 2,358 and Audi with 2,307.
However, from April onwards, Volkswagen took the lead, peaking in December with 62,108 units.
BMW also demonstrated an upward trend, concluding the year with 42,066 units in December.
Tesla, on the other hand, after its initial leadership, witnessed a decline in its monthly registrations, recording 37,574 units in December.
What is the outlook for 2025?
In January 2025, BEV registrations increased by 53.5% compared to the same month in the previous year, reaching 34,498 units and accounting for 16.6% of all new vehicle registrations.
This surge is partly attributed to special effects linked to CO2 fleet emission regulations and the weak market performance in January 2024 following the cessation of subsidies.
In February, 35,949 BEVs were registered, marking a 30.8% increase compared to the same month the year before, raising the market share of electric vehicles to 17.7%.
However, both ZDK and the Association of International Motor Vehicle Manufacturers (VDIK) concur that “this market momentum is not expected to be sustained throughout the rest of the year.”
“We anticipate that the number of EV registrations will decline again in the coming months,” ZDK representatives tell Mobility Portal Europe.
