Tesla in 2025: sales decline and challenges in key markets
By ForGeeks 2025 has started the year 2025 with major challenges for Tesla. The company faced significant sales declines in key markets including the US, Europe and China. Despite the launch of the Cybertruck, the company was unable to maintain the same level of demand. Let’s break down what’s going on with the company and what factors are affecting its position.
See below.
Sales decline in California
California, the largest electric vehicle market in the U.S., recorded an 11.6% decline in sales in 2024. Although electric vehicles’ market share remained stable (25.3%), Tesla was one of the reasons for the overall decline. Sales of other brands grew by 1.4%, while Tesla lost ground.
Sales of other brands grew by 1.4%, while Tesla lost ground.
- Model 3: registrations fell by 30,000 units.
- Model Y: down 4,000 units.
- Cybertruck: became the best-selling electric pickup in California, but with only 9,019 registrations, below expectations.
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Trouble in Europe
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In Europe, Tesla is also losing ground:
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- Germany: sales are down 60% in January 2025 (1,277 cars).
- France: down 63% year-on-year.
- Britain: down 8% despite the growing popularity of electric cars.
Ilon Musk’s company has lost ground to brands such as Volkswagen, BMW, Audi and Chinese manufacturers.
China: seasonal slowdown and competition
China, which accounts for a third of global sales, also showed a decline of 11.5% in January 2025. Reasons:
- Seasonal slowdown due to Chinese New Year.
- Production adjustments at Shanghai Gigafactory.
- Growing competition from local brands such as BYD and NIO.
Factors affecting Tesla’s decline
- Competition: traditional automakers and Chinese brands are stepping up the pressure.
- Lack of key models: The company has no presence in the three-row SUV segment, which is gaining popularity.
- The end of subsidies: In Europe, the elimination of incentives for electric vehicles has reduced demand.
- Political scandals: Ilon Musk’s involvement in politics scares off some buyers.
According to a report by the Nonpartisan EV Politics Project, the manufacturer is losing the support of Democratic-leaning buyers who traditionally support electric cars.
Investor Reaction and the Future of Tesla
After the U.S. election, Tesla’s stock rose thanks to investor optimism about Musk’s ties to Donald Trump. However, the stock plummeted after reports of a sales slump were published.
After the election, Tesla’s shares fell.
The next major milestone for the company is the launch of the updated Model Y. The success of that model could help revive sales, but scandals surrounding Musk could overshadow the product.
The company’s next major milestone is the launch of the revamped Model Y.
Closure
Tesla faces significant challenges in 2025. Increased competition, market changes and political scandals are creating uncertainty for the company’s future. Whether it will be able to regain its footing, time will tell.
The article Tesla in 2025: sales slump and challenges in key markets was first published on ITZine.ru.
