EV Sales

Tesla’s German sales plummeted in October 2025, despite overall EV market growth. Only 750 units were sold, a 50% year-over-year decrease. Analysts attribute this decline to several factors: Elon Musk’s polarizing image impacting brand perception, increased competition from European and Chinese automakers offering cheaper EVs, and the discontinuation of EV purchase incentives. Tesla introduced a lower-cost Model Y in response, but its impact remains unclear. A planned government incentive program in 2026 may boost overall EV adoption but won’t necessarily favor Tesla.

Tesla shares fell over 4% after European sales data revealed a 23% year-over-year decline in August EV registrations, contrasting with a 26% rise in overall European EV market. RBC analysts remain optimistic, projecting strong Q3 deliveries driven by U.S. tax credit incentives. Despite a challenging start, Tesla’s stock is up 5% YTD. Analysts suggest Elon Musk’s political involvement might affect the brand. Tesla plans a more affordable model to counter increasing competition.