Despite experiencing a "cliff-like" drop in sales in Germany, Tesla has decided to acquire part of the assets of the bankrupt German high-tech parts manufacturer Manz AG. This transaction includes the factory, equipment, and over 300 employees located in Reutlingen, Germany.

Manz AG stated that its bankruptcy administrator signed a purchase agreement with Tesla's subsidiary, Tesla Automation GmbH, on Monday. The parties chose not to disclose the purchase price, and the completion of the transaction will be subject to relevant merger control laws. Manz AG added that approximately 100 employees will lose their jobs and will not be transferred to Tesla Automation GmbH.

This acquisition marks an expansion of Tesla's presence in the German market, where the company already operates a Gigafactory near Berlin. However, this transaction occurs at a time when Tesla is facing a significant decline in sales across the European market, including Germany. Data shows that Tesla's sales in Germany dropped nearly 60% year-on-year in January, while the total sales in Europe for that month were only 9,900 vehicles, a decline of over 45% year-on-year. Notably, despite Tesla's sales decline, overall electric vehicle sales in Europe grew by over 37% in January, increasing the electric vehicle market share to 15%. This indicates that Tesla's sales issues cannot be attributed to a deteriorating overall market environment.

Analysts point out that the decline in Tesla's sales in January is due to multiple factors. Tesla CEO Elon Musk has recently been active in EU politics, publicly supporting the far-right German party "Alternative for Germany" (AfD), which has sparked widespread controversy and could negatively affect Tesla's brand image. Additionally, consumer hesitation has also impacted sales. With the new Model Y set to be released in the first half of 2025, many consumers are choosing to delay their purchases. Furthermore, last January saw a surge in sales due to the Model 3 refresh, creating a high comparison base that makes this year's sales more challenging. Analyst Matthias Schmidt noted, "Despite this, January's sales are still disappointing and may indicate that some consumers are turning to other brands."

In the face of unfavorable market conditions, Tesla's stock has also declined, with shares dropping over 8% on Tuesday, resulting in a loss of $89.2 billion in market value and bringing its total market capitalization below $1 trillion, the lowest level since November of last year. Data shows that Tesla's stock has fallen 25% so far in 2025, far exceeding the Nasdaq index's 1.5% decline during the same period, and down over 35% from the historical closing high on December 16.

Tesla is currently facing challenges beyond declining European sales. According to data from the California New Car Dealers Association, Tesla's sales in California dropped 11.6% year-on-year in the fourth quarter of 2024. California has always been Tesla's largest consumer market in the U.S., and this data raises further concerns about its domestic sales.

Additionally, reports indicate that some highly anticipated updates to Tesla's autonomous driving systems have failed to meet user expectations. Many owners have stated that the "City Navigation" feature launched in the Chinese market has not reached the fully autonomous driving level promised by Musk. Meanwhile, Chinese electric vehicle manufacturers like BYD are offering similar features at lower prices or even for free, intensifying concerns about Tesla's competitiveness in the market. Moreover, Musk's extreme political statements have sparked consumer boycotts, leading to protests at Tesla stores and service centers. The Trump administration's recent announcement of significant tariffs on goods from Canada, Mexico, and China has further impacted Tesla's demand in overseas markets.

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（Source: uSMART HK）