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Before the battle of El Alamein, Rommel did consider to withdraw his forces. He wasn't able to do so, because of the lack of fuel on the frontlines. His radius for his Panzer was about 300 Km's at that time. Also, a lot of trucks and aircraft weren't able to ride or fly, because of oil shortages... And about two weeks before El Alamein two Italian Tankers sailing for Tobroek were spotted by aircraft from Malta and consequently sunk...

An ever interesting historical what-if?

In 1940, Germany didn't anticipate a Mediterranean campaign at all so a German assault then was never a realistic option. Axis Grand Strategy in the Med basically was an almost perpetual reaction to Allied initiative after Beda Fomm, even when the Afrika Korps was 'winning' on the ground.

Hitler should have abandoned North Africa and saved the approx. 200,000 troops he lost in Tunisia. Can you imagine the good use they could have been put to in defending on the mainland? This would also have allowed him to continue Citadel as von Manstein wanted to do instead of stopping the offensive and pulling forces away to cover Italy and the Balkans.

IMO the loss of North Africa would simply hasten Italy's exit from the war and give Hitler a whole new front to defend ie Italy/Sicily/Sardinia, about six months earlier than actually happened.

I suspect many of those troops sent to Tunisia would have been needed in Italy rather than being thrown into the meat grinder that was Zitadelle - where they would probably have made little difference.