In May 2025, the number of new registrations of electric cars in Germany increased by almost 45 percent. But of all people, Tesla does not benefit from the trend: the US group clearly loses ground.
• E-car registrations in Germany will increase by almost 45 percent in May 2025
• Tesla has a drop in sales of 36.2 percent and loses market share
• Funding stop, lack of model newness and limited discounts burden the demand
Market overview: Electric cars with strong growth
Electric cars are still becoming increasingly popular in Germany. As can be seen from the monthly report in May 2025 of the Federal Motor Transport Office (KBA), 43,060 battery -electrical cars (BEV) were re -approved – an increase of 44.9 percent compared to the previous year. The proportion of pure Stromer thus achieved a new high of 18.0 percent in the entire new car registrations. The overall market for electric vehicles thus shows a clear upward dynamics – even if this trend does not apply to all manufacturers alike.
Tesla loses significantly – against the industry trend
While the overall market for electric cars is increasing, the negative trend at Tesla continues. In May 2025, only 1,210 vehicles from the US manufacturer were re-approved, as can be seen from the KBA statistics. This corresponds to a decline of 36.2 percent compared to the same month last year. In May 2024, 1,896 vehicles were released on the street.
The market share has also shrunk significantly: only 2.8 percent of the battery -electric cars newly approved in May 2025 came from Tesla – after 6.3 percent in the previous year. Although Tesla was able to grow slightly compared to April, the decline remains striking in the year and falls significantly from the industry trend.
Why Tesla is particularly suffering from the collapse in demand
Several factors contribute to the fact that Tesla in Germany loses significantly more market share than other manufacturers in the electrical segment. One of the main reasons is the elimination of the state environmental bonus. After the funding was discontinued in December 2023, the demand for electric cars decreased noticeably. Tesla in particular felt this early, since, unlike many competitors, the company hardly relies on classic leasing models or generous discounts. According to the N-TV, the funding stop had a significant negative effect on the sales figures in early 2024.
Added to this is the stagnant model range: since Model Y’s market launch in 2020, Tesla has not presented a new volume model. While established manufacturers and new competitors from China continuously expand their variety of model, the Tesla customer continues to wait for the announced cheaper entry-level model. Probably in vain, because the plans are now said to have been stamped. As the Reuters news agency reports, Tesla will remain behind the competition in an increasingly price -sensitive market.
Repeated price reductions also apparently did not have a sustainable effect, as can be seen in the continued decline in sales. Added to this is the fact that the political ambitions of company boss Elon Musk are particularly critical in Germany. The CEO has now given up its commitment to the US administration Doge Authority, but Tesla’s reputation could already have been damaged.
Editor finance.net
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