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Tesla sales in Europe drop 45% as buyers turn away from Musk

By Mathilda Bartholomew | February 27, 2025

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Tesla has lost over $100 billion in value following a sharp decline in European sales.

Tesla sales in Europe drop 45% as buyers turn away from Musk

Tesla's European sales took a nosedive last month, nearly halving compared to the same time last year. The drop comes as CEO Elon Musk continues making waves in political debates on both sides of the Atlantic.

Tesla has lost over $100 billion in value following a sharp decline in European sales.

The Texas-based carmaker sold just 9,945 vehicles in Europe in January, a 45% drop from the 18,161 it sold a year prior, according to the European Automobile Manufacturers’ Association (ACEA). Tesla’s market share also shrank from 1.8% to just 1%.

So, what’s behind the slump? One possible reason: Musk’s growing involvement in political affairs, including his close ties to Donald Trump and outspoken support for Germany’s far-right AfD party. In January, he even called AfD’s co-leader Alice Weidel to congratulate her after the party doubled its votes in Germany’s election.

Musk also stirred controversy in the UK by accusing Keir Starmer and other politicians of covering up scandals—without evidence—while leaders in France, Norway, and Germany have publicly clashed with him over his social media posts supporting far-right movements.

It’s not just talk—Musk’s political stance may be hitting Tesla’s bottom line. In Germany, Tesla sold only 1,277 new cars last month, its worst month since July 2021. In France, sales crashed 63%, and for the first time, Tesla registered fewer vehicles in the UK than its Chinese rival, BYD.

Meanwhile, the overall EV market in Europe is thriving, growing 34% year-over-year to 124,341 cars. Some of the biggest markets—Germany, Belgium, and the Netherlands—saw double-digit growth, proving demand for electric cars is strong. But while other brands are gaining ground, Tesla is losing momentum.

Is Musk’s personal brand turning buyers away? Or is this just a temporary slump? Either way, Tesla’s dominance in the EV world is looking shakier than ever.

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