Sales of Tesla’s electric vehicles (EVs) have taken a significant hit across key European markets, with analysts citing a growing consumer backlash against CEO Elon Musk’s political activism. In January, the German Federal Motor Transport Authority reported a drastic 59% drop in Tesla registrations in Germany, where the company operates its only manufacturing plant in Europe. This decline is notable even as the broader German EV market saw a robust 50% increase in sales during the same period, pushing Tesla’s market share down from 14% to just 4%, according to Financial Times.
In addition to Germany, Tesla also saw sharp sales declines in other key European markets. In France, registrations fell by 63%, while Norway saw a 38% drop, and in the UK, sales decreased by 8%. The sudden drop in Tesla’s sales contrasts with the broader growth in electric vehicle adoption, particularly in Germany and France, as government subsidies begin to recover.
Automotive analysts have suggested that some of Tesla’s decline in Germany may be due to consumers waiting for the upgraded Model Y, expected in the first half of 2025. However, a growing number of experts are attributing the downturn to a backlash against Musk’s increasing involvement in European politics.
Musk’s intervention in German politics has stirred controversy, particularly his support for the far-right political party, Alternative for Germany (AfD). The party, which has drawn criticism for its extreme rhetoric and anti-migrant stance, is gaining ground ahead of the country’s federal elections scheduled for February 23. Musk recently hosted Alice Weidel, a leader of the AfD, for a lengthy discussion on his social media platform, X, which sparked outrage in both German political circles and the business community. Chancellor Olaf Scholz and Christian Democrat leader Friedrich Merz have condemned Musk’s support for a party widely considered to hold extremist views.
The backlash has reached the streets, with some Tesla owners publicly distancing themselves from Musk’s political positions. One entrepreneur from Baden-Württemberg reported receiving thousands of orders for a sticker reading: “I bought this before Elon went crazy,” in reference to Musk’s controversial political stances.
As the controversy continues to unfold, officials in Brussels have ramped up investigations into Musk’s social media platform, X, in relation to its role in promoting far-right content. The European Commission has demanded that the platform hand over internal documents regarding its recommendation algorithms.
As Tesla faces increasing challenges in Europe, it remains to be seen whether the company’s reputation can recover from the fallout surrounding Musk’s political activities. FT reports that while Tesla’s market share has slipped, the ongoing developments may serve as a critical test for the company’s ability to balance business and political engagement on the global stage.
