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Last year, Tesla’s sales in Europe plummeted, but the company is now gradually regaining its footing in this market. One might have assumed that Elon Musk’s political activities had completely turned European buyers away from the brand, but over time, the situation began to change. Tesla recently announced that it plans to hire an additional 1,000 employees at its Gigafactory near Berlin to meet its ambitious goal of increasing production to 7,500 cars per week by October.
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Interestingly, just a few months ago, Tesla had already announced the hiring of another 1,000 employees at the same plant and stated its intention to increase production to 6,000 cars per week by the end of June. According to Electrek, this ramp-up in production will allow Tesla’s German facility to produce about 390,000 electric vehicles per year. However, this is still below the target of 500,000 vehicles per year that the company set when the plant opened in 2022.
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Elon Musk’s hardline conservative political stance, his direct involvement with DOGE, and his personal ties to President Donald Trump negatively impacted the company’s sales in both the U.S. and Europe in 2025. At that time, Donald Trump threatened to assert control over Greenland and followed through on his promise to impose various tariffs on the European continent. Meanwhile, Elon Musk supported far-right and anti-immigration movements in Europe.
However, sales are now moving in the opposite direction due to rising fuel costs and new government programs in Germany designed to incentivize the purchase of zero-emission vehicles. According to the European Automobile Manufacturers’ Association, Tesla vehicle registrations in Europe from January through May exceeded 118,000, a 57% increase compared to the same period last year.
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This recovery is taking place at a time when European leaders are actively discussing the need to reduce dependence on American technology companies. “Under the new circumstances, Europe must become a geopolitical power,” French President Emmanuel Macron said in February. “This process is already underway, but we must accelerate it and clearly implement all the components of geopolitical power – in the areas of defense, technology, and risk mitigation in relations with all major powers – in order to become much more independent.”
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Earlier this year, the French government announced that it would stop using the American video conferencing platforms Microsoft Teams and Zoom in favor of the French platform Visio. In addition, France signed an agreement to use Mistral models and software in its armed forces. Recently, the European Commission presented a package of measures on “technological sovereignty” aimed at strengthening the European Union’s digital autonomy, with a focus on semiconductors, AI, cloud computing, and open-source software. The Commission recently announced that it had reached a preliminary position on the need to regulate Amazon Web Services and Microsoft Azure under the Digital Markets Act.
The electric vehicle market should be one of the easiest areas for Europe to reduce its dependence on American technology. Unlike cloud services or social media, Europe already has its own electric vehicle manufacturers, including Volkswagen, BMW, and Stellantis. In addition, European buyers have broader access to models from China. However, Tesla now seems confident that European buyers will return to its dealerships.
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