Tesla's German sales plunged 59 per cent last month, its worst performance in years

The unprecedented political advocacy by Elon Musk, the electric car company's chief executive, comes as Tesla's sales plunged 59 per cent in Germany last month.

Tesla Inc registered just 1,277 new cars in January, the lowest monthly sales since July 2021, according to Germany's Federal Motor Transport Authority. Musk's support for the far-right Alternative for Germany party could be a drag on demand.

Tesla's sales also fell in the UK and France in January, which means the company's sales in Europe's three largest electric car markets have declined.

The manufacturer registered just 1,141 cars in January, the lowest since August 2022, according to La Plateforme Automobile, an industry association. Tesla underperformed the industry as a whole, which fell 6.2 percent.

Musk has intervened to an unprecedented degree in European politics in recent months, supporting the far-right Alternative for Germany party and challenging British Prime Minister Starmer and his Labour government.

Tesla's registrations in EU countries fell 13 percent last year, with Germany accounting for most of the decline. The electric car maker has struggled in Germany due to aging models, increased competition and the withdrawal of government subsidies at the end of 2023.

Tesla's sales in California fell significantly last year

Tesla's new car registrations in California fell in each of the four quarters of last year, and sales of its second-most important model plunged 36 percent for the year.

Tesla's sales in California fell nearly 8% in the fourth quarter and 12% for the full year, according to the California New Car Dealers Association. California is by far the largest market for electric vehicles in the United States. Full-year registrations for the Model 3 fell by more than a third.

The drop in registrations came despite Tesla adding a fifth model - the polarizing Cybertruck - to its lineup last year. While more usual business factors also played a role, including the Model 3 series upgrade at the beginning of the year, the company may also have lost some of its business in California because of Musk's active role in the U.S. election.

Musk, 53, has spent at least $288 million in the 2024 election cycle campaigning for Trump and other Republican candidates. In November, Harris, the Democratic nominee, won California by 20.2 points.