Tesla loses ground to Volkswagen in EU's top electric car market Germany country

Tesla Inc. was the biggest loser among electric-vehicle makers last month in Germany, where consumers snubbed Elon Musk’s brand and bought more Volkswagen, Seat and BMW cars.

VW gained the most, selling 6,521 more EVs than a year ago, according to more detailed data Germany’s Federal Motor Transport Authority released on Friday. Volkswagen AG’s Seat brand saw the second-biggest increase, with 2,520 more cars registered.

Tesla sold 1,875 fewer vehicles in a month when total EV sales soared 54 per cent, according to the authority known as KBA. Its share of the European Union’s biggest EV market fell to four per cent from 14 per cent a year ago, trailing brands including Skoda, Mercedes-Benz and Audi.

The top-line sales results Germany released earlier this week added to signs that Musk’s political activities are hurting Tesla in major EV markets. The chief executive officer’s intervention in Germany’s upcoming federal election likely factored in last month’s showing — a poll taken in mid-January found he was viewed unfavourably, and that his political interventions in favour of the far-right Alternative for Germany party were unwelcome.

The EV maker’s sales also declined in the UK last month and plunged 63 per cent in France, meaning registrations fell in Europe’s top three EV markets.

Europe’s carmakers are poised for another tough year as uneven demand for EVs, intensifying competition in China and prospects for trade disputes threaten to weigh on earnings. The German Association of Car Importers expects EV sales to increase this year, though the amount of growth will depend on what incentives are put in place by a new government after upcoming snap elections.

While VW is leading the way in German EV sales, the brand has no new electric models planned for 2025, in contrast with many of its competitors. Chinese brands have been slow to gain traction in the market, with BYD Co. registering only 204 cars last month.

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