
By Flickr user jurvetson (Tim Draper/Steve Jurvetson) -
Tesla Inc. experienced a significant decline in registrations, falling by 63% last month in France, which is the second-largest market for battery-electric vehicles within the European Union.
The company recorded only 1,141 vehicle registrations in January, marking the lowest figure since August 2022, as reported by the French industry association La Plateforme Automobile. This performance lagged behind the overall automotive industry and total electric vehicle sales, which saw decreases of 6.2% and 0.5%, respectively.
In recent months, Tesla’s Chief Executive Officer Elon Musk has become increasingly involved in European political matters, notably endorsing the far-right Alternative for Germany party and confronting UK Prime Minister Keir Starmer and his Labour government. The extent to which these political engagements are impacting the demand for Tesla vehicles in the region remains uncertain.
Tesla registrations in European Union countries experienced a decline of 13% last year, with Germany being a significant contributor to this downturn. The electric vehicle manufacturer has faced challenges in the German market due to an outdated model range, heightened competition, and the cessation of government subsidies at the end of 2023.
In Germany, Tesla’s sales saw a dramatic decrease of 41% last year, while the overall sales of battery-electric vehicles fell by 27%. The Federal Motor Transport Authority is expected to release the results for January on Wednesday.
Competing automakers are looking to Tesla for assistance in meeting the EU’s increasingly rigorous emissions regulations this year. The American company plans to collaborate with at least five other manufacturers, including Toyota Motor Corp., Stellantis NV, and Ford Motor Co., by pooling the fleet of electric vehicles it sells this year.
French government ministers, at the end of last month, urged the European Commission to promptly halt the regulation concerning CO2 emissions from passenger vehicles. They cautioned that such a move could lead to billions of euros benefiting Chinese manufacturers and Tesla, whose CEO, Elon Musk, has been vocally critical of European regulations and values.