I am not familiar with that aftermarket tachometer, but thee are several general things to consider, as the other have pointed out already-
1. Usually (*) the tachometer connection is from the wire on the ignition controller side of the coil which is <12V pulse. But, some tachometers expect/use a coil inductive pickup from one of the high voltage sparkplug leads.
2) The bike may be running fine, but the tachometer may not have a good earth ground of its own - if it doesn't have a good ground, nothing it displays will be accurate.
3) Remember that the BMW airhead is a wasted spark system. The ignition generates a spark for both cylinders each time it sparks, even though one cylinder is on on the compression stroke and the other is on the exhaust stroke. With certain aftermarket tach configurations, it might interpret this as 2X RPM count