Tesla saw a drop in sales across five major European countries in January, including the UK and France.
This comes amid Elon Musk’s increasing involvement in politics, especially with his financial backing of Donald Trump’s 2024 campaign. Musk spent a whopping $250 million supporting Trump's bid to return to the White House, which ultimately succeeded. He's also sparked debate with his outspoken support for far-right parties in countries like the UK and Germany on his social media platform, X.
The drop in sales coincides with new electric vehicle (EV) models from competitors making waves in the market.
Tesla’s UK sales took a nearly 12% hit in January, even as overall EV registrations across Europe hit a record high. Meanwhile, Tesla's sales also plummeted in other European countries: France saw a 63% drop, Sweden 44%, Norway 38%, and the Netherlands 42%. In California, Tesla's home turf, sales dropped by 12% as well.
While 2024 marked Tesla’s first annual decline in deliveries, it still leads the EV market in the U.S. Musk has promised to launch cheaper EVs in 2025 and is doubling down on autonomous driving technology.
Tesla’s UK market share also dropped significantly in January, falling from No. 2 to No. 7, behind brands like Volkswagen, Mercedes, and Peugeot.
A January survey by Electrifying.com revealed that 59% of British EV owners and potential buyers said Musk’s influence would keep them from purchasing a Tesla. “Musk’s influence on the brand is becoming increasingly polarising, pushing many buyers to look elsewhere,” said Electrifying.com CEO Ginny Buckley. “With over 130 mainstream EV models now available in the UK - compared to just 25 in 2020 - competition has never been fiercer and Tesla is already feeling the pressure.”
Musk has also drawn criticism from European politicians for his recent comments, including his support of far-right commentators on X. Some users have even quit the platform over the spread of misinformation, but Musk defends his stance as a free speech issue.
Tesla’s reputation has been further challenged in Sweden, where a November survey showed a drop in positive views of the brand, especially following Musk's political activities.
New AutoMotive’s Ben Nelmes told Reuters that Tesla’s struggles aren't just about Musk's actions but rather the company’s failure to release a new mainstream model since the Model Y in 2020. Meanwhile, competitors, including Chinese manufacturers, have launched fresher products.
Despite all this, Tesla's stock has remained strong, doubling in value over the past year, with a forward P/E ratio well ahead of legacy automakers and even tech giants.
