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“Tesla Sales Slide in Germany, Deepening Europe-Wide Declines as Demand Falters” 🚨

Tesla (TSLA $440.57, -2.64%) is facing renewed pressure in Europe after fresh data showed a sharp sales drop in Germany, one of the automaker’s most important international markets. German registrations fell 20% in November, and Tesla’s year-to-date sales are now down nearly 50% compared with the same period last year.

The decline extends what has been a challenging year for Tesla across Europe, where competition from local EV makers, weakening consumer demand, and reduced subsidies have all weighed heavily on performance.

Musk Calls Europe Tesla’s “Weakest Market”

CEO Elon Musk has repeatedly criticized European regulators for slowing Tesla’s growth on the continent, particularly regarding the delayed approval of its Full Self-Driving (FSD) system.

Musk argues that Tesla’s ability to fully unlock the value of its vehicles is hindered by strict rules, limiting the company’s capacity to differentiate in an increasingly crowded EV market.

But Even Where FSD Is Allowed, Adoption Is Low

The regulatory issue tells only part of the story.

On Tesla’s most recent earnings call, CFO Vaibhav Taneja disclosed that only 12% of Tesla’s global fleet pays for FSD, even in regions where it’s available. The low adoption rate raises questions about:

• Consumer trust in autonomous systems

• The value proposition of FSD’s current capabilities

• Tesla’s ability to monetize software at scale

With software revenue viewed as crucial to Tesla’s long-term margins, the adoption figures add another layer of concern for investors.

A Tough Road Ahead in Europe

Between surging competition from European and Chinese EV makers, tightening regulations, and inconsistent demand for premium EVs, Tesla faces an uphill battle in its third-largest market. The steep sales drop in Germany—a country where Tesla has a major factory in Grünheide—only amplifies those challenges.