Tesla saw a massive decrease in sales across Europe in January as competing electric vehicle makers succeeded.

According to new figures from the European Automobile Manufacturers Association published Tuesday, Tesla saw a 45% decline in sales in January compared with the same period last year. The report found that Tesla delivered 9,945 vehicles in the first month of the year versus 18,161 in 2024.

That’s a two-year sales low for the Elon Musk-led company. Meanwhile, European auto giants Volkswagen, Stellantis and Renault outshone Tesla, with the European Automobile Manufacturers Association recording a 35% jump in EV sales on the Continent.

In Germany, which recorded a 53% uptick in EV sales last month, Tesla sold only 1,277 new vehicles, the lowest monthly sales since July 2021. Tesla is also facing steep competition from China’s BYD, which outsold Tesla in the U.K. for the first time last month. 

The dip in sales could be attributed to Tesla’s efforts to switch over production to its most popular model, the Tesla Model Y SUV, which the company’s leaders have said could hurt registrations in the short term. 

The company may also be facing an inventory shortage due to the wide-ranging discounts it offered last year. Tesla registered around 45,000 new EVs in Europe in December 2024.  

The company is also dealing with a public perception crisis in Europe, as CEO Musk continues to weigh in on regional politics. 

Mr. Musk has fostered a close relationship with Germany’s conservative Alternative for Germany party. The billionaire has appeared at AfD events, hosted live streams with its leaders and said the party is the country’s only hope for prosperity. 

AfD made huge gains in Sunday’s election, yet many Germans still don’t like Mr. Musk’s involvement in their nation’s politics. A January YouGov poll showed that over 90% of respondents found his “influence” over German politics to be “unfavorable/unacceptable.”

• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.