Tesla (TSLA) sales fell 63% last month in France, which is currently the second-largest EV market in the European Union. The manufacturer registered only 1,141 cars in January, the fewest since August 2022, according to the French industry association La Plateforme Automobile. Tesla underperformed the overall industry and total EV sales, which dipped 6.2% and 0.5%, respectively.

Last month, French government ministers called for the European Commission to immediately suspend the regulation on CO2 emissions from passenger cars. They warned that it could result in billions of euros going to Chinese manufacturers and Tesla, “whose CEO Elon Musk is openly attacking European regulations and values.”

Tesla Struggles in 2025, especially in the EU

Tesla is underperforming in the majority of Europe in 2025, which has had a significant impact on TSLA stock. TSLA is down 6% today, as the EU weighs heavily on the company’s performance. Since his insertion into Donald Trump’s administration in November, Tesla CEO Elon Musk has put more attention to European politics. In particular, he has sided himself with the far-right Alternative for Germany party, while taking on UK Prime Minister Keir Starmer and his Labour government. The EU nations have seemingly responded to this with the overall decline of Tesla and EVs going down in the region.

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Tesla registrations across EU countries fell 13% last year, with Germany accounting for most of the decline. The EV maker has struggled in the country due to an aging model lineup, increasing competition, and the withdrawal of government subsidies in late 2023. Tesla’s sales plummeted 41% last year in Germany, while overall battery-electric vehicle sales declined 27%.

Tesla’s Q4 earnings report fell below expectations, which caused a slight dip in TSLA stock. However, it did show improvement after Musk and Tesla promised a return to growth in 2025. Elon Musk has predicted that the company will perform bigger and better than some of the Mag-7 US stocks, including Apple; Nvidia, and Amazon. Many analysts are mixed on the stock, with more analysts calling for investors to hold or sell TSLA stock than buy compared to 4 months ago.