Tesla sales plummeted in Germany in January, according to official data, after billionaire Elon Musk threw his full support behind the far-right Alternative for Germany (AfD) party.

Germany's Federal Motor Transport Authority (KBA) reported that there were just 1,277 new Tesla vehicles registered in January, down 59.5% from the same month in 2024.

Tesla loses ground in German market

Tesla had been flying high in the German market in 2022 and Musk's company was the best-selling electric car brand that year.

However, the latest figures paint an altogether different picture. The almost 60% drop in sales has caused Tesla to fall into third place, leaving it with less than a 10% market share in 2024.

On the other hand, KBA data showed there had been an increase in overall sales of battery-powered vehicles across all brands by 53.5% compared to January 2024.

Tesla, like other electric carmakers, has seen sales fall in Germany over the past year following the withdrawal of government subsidies, and amid a smaller appetite for electric vehicles in Europe. 

Nevertheless, no other electric vehicle brand lost as much ground as Tesla.

What's the link between Musk and the AfD?

Musk came out in support of Germany's far-right political party AfD in December, in a move that has stoked controversy and concern over undue influence.

The US billionaire has since repeatedly voiced his support for AfD leader Alice Weidel, whose party is currently polling in second place ahead of Germany's federal election later this month.

Musk has also taken swipes at Germany's leadership including President Frank-Walter Steinmeier. In December Musk accused Steinmeier — whose role is largely symbolic — of being an "anti-democratic tyrant" and also hurled insults at Chancellor Olaf Scholz.

The Tesla CEO's behavior is "extremely damaging," Ferdinand Dudenhöffer, director of the Center Automotive Research Institute in Germany, told the AFP news agency. 

"Nobody wants to be associated with it... Tesla and Musk are almost inextricably linked." 

Musk also drew criticism after making a gesture he made at US President Donald Trump's inauguration which resembled a Nazi salute.

While his support among AfD voters may have increased, the far-right party is largely skeptical of electric vehicles.

Edited by: Roshni Majumdar